Navig8 Adds Two More Tankers to Its Orderbook

Navig8 Chemical Tankers Inc has signed shipbuilding contracts for the construction of two 25,000 dwt IMO2 eco-design Stainless Steel Chemical Tankers to be built at Fukuoka Shipbuilding. The newbuildings are set for delivery in 2017.

“We are experiencing robust growth for chemical tanker demand, in particular for long haul cargoes. We anticipate an acceleration of demand growth from 2015 onwards, initially from the Middle East producers, which are expected to add 5 million tonnes of new ethylene capacity between 2014 and 2016. Thereafter, the biggest change will come from the US from 2016 onwards, on the back of the US shale gas revolution, which is set to reshape the landscape for liquid chemical production and transportation,” the company said in a press release. “This order fits very well with our newbuilding strategy. Larger Eco long haul chemical tonnage from a first class yard,” Navig8 concluded.

Navig8 Chemical Tankers, the venture sponsored by Navig8 Group and Oaktree Capital Management L.P, has a current orderbook of eight 25,000-dwt stainless-steel chemical tankers at Japan’s Kitanihon Shipbuilding and Fukuoka Shipbuilding for delivery in 2016 and 2017, and 18 units of 37,000 dwt on order at South Korea’s Hyundai Mipo Dockyard (HMD) for delivery next year.

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Navig8, March 28, 2014