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South Korea: DSME inks LOI worth USD 1 billion to build 10 LNG dual fuel VLCCs

09 Dec 2020

Daewoo Shipbuilding & Marine Engineering (DSME) on Monday (7 December) reportedly signed a letter of intent to build 10 liquified natural gas (LNG) powered very large crude carriers (VLCCs) with a European client.

If the deal is confirmed, the contract is purportedly worth KRW 1.1 trillion (USD 1 billion), with each 300,000 tonne vessel estimated to be worth around USD100 million.

DSME allegedly expects to finalise the deal within the first quarter of 2021.

Last week, DSME reported it had cinched a USD 260 million order for three LNG dual-fuel VLCCs from Abu Dhabi National Oil Company (ADNOC). The contract includes options for three additional ships.

The vessels will be designed to run on LSFO, instead of being fitted with a scrubber, to meet the IMO 2020 Sulphur Cap, or feature a dual-fuel engine enabling the ship to run on LNG as its potential future fuel. 

The vessels in the current deal are purportedly scheduled for delivery in the first quarter of 2023.

Photo credit: Fredrick Filix on Unsplash
Published: 9 December, 2020

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