The agreement with Hyundai Samho Heavy Industries (HSHI) and Daewoo Shipbuilding and Marine Engineering (DSME) is for a minimum of five and up to 10 LPG carriers of 84,000 cu m, due to be delivered in 2015.
The orders replace a previously announced order for four 114,000 dwt, $52m LR2s at Samsung Heavy Industries (SHI) announced in May, according to the company
"The structure of the LPG market presents an array of opportunities for us to build value with our shareholders," the company said in a press release announcing the potential $740m investment in the sector.
Scorpio is not alone in their positive outlook for the LPG sector; in June the largest mover of seaborne LPG, Singapore-based Petredec, exercised an option for a 84,000 cu m LPG carrier and added further options, bringing its total to three firm orders and three options at the yard. Excluding options, Petredec's fleet totals of 18 VLGCs owned, chartered or on order.
Scorpio also revealed it will receive a time chartered-in a 2013-built, fuel efficient LR2 product tanker of 105,708 dwt in September for one year at day rate of $16,500, with an optional year extension at $17,550/day and that it has extended time charters on a 2012-built LR2 product tanker (99,993 dwt) for six months at $15,000/day and a 2008-built 115,406 dwt LR2 product tanker for six months at $16,250/day. Both extensions begin in July 2013.
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