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Yangtze River Shipbuilding Industry has won the first order for Greek shipowner LR1 finished oil tanker


On May 7th, Greek shipowner Performance Shipping announced the signing of a 75000 deadweight ton LR1 chemical/oil tanker construction contract with Yangtze River Shipbuilding Group through an independent wholly-owned subsidiary.

According to the contract, this new ship will be delivered in January 2027 at a price of $54.1 million (approximately RMB 391 million). Performance Shipping will pay the vessel payment in five installments, with 15% to be paid upon receipt of the advance payment guarantee. Subsequently, 10% will be paid during steel plate cutting, keel laying, and launching, with the remaining 55% to be paid upon delivery.

As a reference, current Clarkson data shows that the cost of a new 73000-75000 deadweight ton finished oil tanker is approximately $60.5 million, an increase of 6% compared to $57 million in the same period last year.

The ship will be equipped with an electronically controlled main engine with a high-pressure selective catalytic reactor (HPSCR), which complies with Tier III nitrogen oxide emission standards; Equipped with an exhaust gas purification system (EGCS) that complies with Tier II nitrogen oxide emission standards; In addition, a ballast water treatment system (BWTS) will also be equipped.

It is understood that Performance Shipping was founded in 2010, originally named Diana Containerships. The company began its gradual transformation in 2019 and sold its last container ship in 2020, becoming a pure Af tanker owner. Its fleet currently owns and operates 7 Aframax oil tankers, all of which were built by Japanese and Korean shipyards and delivered gradually between 2009 and 2013. Last year, the company placed its first order for ships at a Chinese shipyard and signed contracts with Waigaoqiao Shipbuilding for the construction of three 114000 deadweight ton LR2/Aframax oil tankers.

Andreas Michalopoulos, CEO of Performance Shipping, said, "We are pleased to announce that we have signed a new shipbuilding contract for a modern and environmentally friendly LR1 oil tanker, which will be equipped with the latest high specification engines to meet emission requirements, as well as scrubbers and ballast water treatment systems. The construction of the vessel will be undertaken by one of the world's most reputable and specialized shipyards."

Along with the latest orders, Performance Shipping has increased the number of new ships under construction to 4, with a planned delivery time from October 2025 to January 2027. Among them, three LR2 ships under construction by Waigaoqiao Shipbuilding recently obtained a five-year lease agreement from the commodity trading company Gunvor, with a total revenue of 169.8 million US dollars.

Michalopoulos pointed out, "Our fleet expansion and renewal strategy will prioritize fuel efficiency and low emissions, which reflects our commitment to participating in energy transformation. By taking constructive measures to reduce carbon emissions, we aim to provide customers with environmentally sustainable operations."

Since the beginning of this year, Yangtze River Shipbuilding has undertaken the vast majority of global LR1 tanker orders. According to Clarkson's data, there were a total of 11 LR1 tanker orders this year, of which Yangtze River Shipbuilding received 9, including 4 from Italian shipowner d'Amico International Shipping (DIS), 2 from Greek shipowners Everend Shipping and Cape Shipping, and the latest 1; In addition, American shipowner International Seaways has ordered two ships from K Shipbuilding (formerly STX) in South Korea.

At present, Yangtze River Shipbuilding LR1 finished oil tankers hold a total of 18 orders, ranking first in the world. All of these new ships are built by New Yangtze Shipbuilding. 

According to Clarkson's data, as of now, New Yangtze Shipbuilding has held orders for 80 ships with a deadweight of 5.9647 million tons, including 33 container ships, 28 finished oil tankers, 12 chemical tankers, 5 open hatch ships, and 2 bulk carriers, with a delivery date scheduled for 2027.

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