NASSCO to Build Additional Jones Act Tanker for APT

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June 16, 2014

Image credit: NASSCO

General Dynamics NASSCO announced Monday that it has inked a contract with repeat-customer American Petroleum Tankers (APT) for the design and construction of a fifth LNG-ready product tanker.

The Jones Act-qualifying, LNG-conversion-ready product tanker will be 50,000 deadweight tons with a 330,000 barrel cargo capacity.

This new tanker, supported by a long-term charter, will be constructed at the NASSCO shipyard in San Diego, thus meeting the Jones Act requirement that ships carrying cargo between U.S. ports be built in U.S. shipyards.

Construction is scheduled to begin the fourth quarter of 2015, with delivery scheduled for the second quarter of 2017.

The 610-foot-long tanker is a continuation of the ECO MR tanker design, which delivers improved fuel efficiency and incorporates the latest environmental protection features, including a Ballast Water Treatment System. Including this order, NASSCO is now under contract for the design and construction of eight tankers: five for American Petroleum Tankers and three for Seabulk Tankers, Inc.

All eight ships are being designed by DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME) of Busan, South Korea. DSEC’s ECO design achieves improved fuel efficiency through several features, including a G-series MAN ME slow-speed main engine and an optimized hull form. The tankers will have conversion-capable, dual-fuel-capable engines and the ability to accommodate the future installation of an LNG fuel-gas system and Type C LNG tanks.

Today’s announcement follows an original contract signed in May 2013 between APT, a subsidiary of Kinder Morgan, and NASSCO which called for the construction of four such vessels and included the option for four additional ships.

Kevin Graney, vice president and general manager of General Dynamics NASSCO, said, “NASSCO is very pleased to be continuing our partnership with American Petroleum Tankers by building a 5th ECO tanker. This additional order, plus NASSCO’s existing backlog of tankers and containerships, is a clear indication that NASSCO is the shipyard of choice for Jones Act vessel construction.”

Rob Kurz, vice president of Kinder Morgan Terminals and president of KMP subsidiary APT, commented, “We are very excited to be building an additional tanker at NASSCO. This new order clearly demonstrates APT’s and Kinder Morgan’s continued commitment to the Jones Act tanker market.”

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