TORM Orders Four LR2 Tankers for $200 Million

Photo: TORM
Photo: TORM

Denmark-based tanker owner TORM says it has ordered four newbuild LR2 tankers from Guangzhou Shipyard International (GSI) in China for $200 million, with options to build up to six additional tankers.

The four LR2 tankers are scheduled for delivery in fourth quarter of 2017 and the second quarter of 2018. The six options may be within the LR2, LR1 or MR segments with expected delivery in 2018 and 2019.

The order marks the first newbuild order for TORM since 2008.

The company said it utilized its long-term relationship with GSI and China State Shipbuilding Corporation to
source the contract. TORM already has 16 GSI vessels in the current fleet, and it has had good technical and commercial experience with these vessels.

“I am very pleased that TORM has utilized its long-term relationship with Guangzhou Shipyard International to enter into an agreement to purchase four LR2 newbuildings with an option for an additional six vessels. Given the market outlook, we see this as an attractive way to grow and renew our LR2 fleet at a favorable price”, says CEO Jacob Meldgaard.