Plans for 12 VLCC newbuildings by Singaporean oil trader Hin Leong Trading Pte. Ltd. and its tanker unit Ocean Tankers (Pte) Ltd. are going ahead despite a global economic slowdown. Hin Leong director Evan Lim told Tankerworld that the company “is on track to take delivery of all 12 VLCCs by 2012” from Shanghai Waigaoqiao Shipyard (SWS). Lim said that “banks are currently not forthcoming with finance for tanker newbuilding projects” but pointed out that Hin Leong's purchase of the dozen VLCCs through Ocean Tankers was finalised “some time ago already”.
Lim added that there will be no delays or cancellations to the entire order.
The first of the dozen newbuilds, the 318,000 dwt Hua San, has been delivered to Ocean Tankers, which will reportedly be chartering it out to a Chinese state-owned oil firm.
Hua San is the world's first VLCC built to more stringent Common Structural Rules (CSR) and the largest ship [by weight] ever built in China.
Each VLCC newbuild reportedly costs some $115 million, a figure one broker described to Tankerworld as “very affordable compared to prices at Korean yards.”
Lim was recently quoted saying that SWS was chosen as it is ''a new yard with capable technology.''
Tankers built to CSR specifications have been described as “stronger, safer and more dependable to operate.”
“With growth in demand for crude oil in China showing no sign of abating, it is anticipated that this market will require another 40 to 50 VLCCs in the next five years,” said a senior SWS official.
His view echoes separate reports earlier this year indicating that Chinese companies will likely need to order some 65 VLCCs by 2012.
Data based on China's GDP growth of 10% per year indicates that the country will need to increase crude oil import volumes by 8%.
Hin Leong owns and operates Singapore's 14.25 million barrel-capacity Universal Terminal in a joint venture with China's PetroChina (35% stake).
Lim added that there will be no delays or cancellations to the entire order.
The first of the dozen newbuilds, the 318,000 dwt Hua San, has been delivered to Ocean Tankers, which will reportedly be chartering it out to a Chinese state-owned oil firm.
Hua San is the world's first VLCC built to more stringent Common Structural Rules (CSR) and the largest ship [by weight] ever built in China.
Each VLCC newbuild reportedly costs some $115 million, a figure one broker described to Tankerworld as “very affordable compared to prices at Korean yards.”
Lim was recently quoted saying that SWS was chosen as it is ''a new yard with capable technology.''
Tankers built to CSR specifications have been described as “stronger, safer and more dependable to operate.”
“With growth in demand for crude oil in China showing no sign of abating, it is anticipated that this market will require another 40 to 50 VLCCs in the next five years,” said a senior SWS official.
His view echoes separate reports earlier this year indicating that Chinese companies will likely need to order some 65 VLCCs by 2012.
Data based on China's GDP growth of 10% per year indicates that the country will need to increase crude oil import volumes by 8%.
Hin Leong owns and operates Singapore's 14.25 million barrel-capacity Universal Terminal in a joint venture with China's PetroChina (35% stake).