Bruton Limited announced a Letter of Intent (LOI) with New Times Shipbuilding Co. Ltd. (NTS) to order two new Very Large Crude Carrier (VLCC) vessels, with an option for two more. These new vessels will be owned by the Company’s future subsidiary, Andes Tankers III Ltd., and are part of Bruton Limited’s strategic focus on its VLCC newbuilding program.
Details of the Newbuilding Order
The agreement covers the firm order of two VLCC vessels, which are massive oil tankers typically capable of carrying around 2 million barrels of crude oil. The vessels are a repeat of previous newbuilding orders placed by Bruton at NTS.
- Firm Order: Two VLCC vessels.
- Options: Options for two additional VLCC vessels at the same price.
- Firm Delivery Schedule: Between the fourth quarter of 2028 (Q4 2028) and the second quarter of 2029 (Q2 2029).
- Optional Delivery Schedule: If declared before December 31, 2025, the optional vessels are scheduled for delivery between Q3 and Q4 2029.
- Payment: The payment schedule for the new vessels will be similar to the Company’s existing newbuilding orders.
Vessel Specifications and Environmental Compliance
The new VLCCs are designed with features that address current and future environmental regulations in the maritime industry.
- Scrubber Fitted: The vessels will be scrubber fitted, meaning they will be equipped with Exhaust Gas Cleaning Systems (EGCS). These systems remove harmful pollutants, particularly sulfur oxide (SOx), from the ship’s exhaust gases, allowing the vessels to use less expensive, higher-sulfur fuel while complying with international emission limits.
- LNG Dual Fuel Ready: The orders include the option to be converted to LNG dual fuel ready ships. This means the vessels are designed and built to be easily converted in the future to run on Liquefied Natural Gas (LNG) as well as traditional marine fuel. LNG is a cleaner-burning fuel that offers significant reductions in SOx, particulate matter, and nitrogen oxide (NOx) emissions, serving as a transitional fuel on the path to decarbonization.
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Source: Bruton
