FSL Trust buys LR2 tanker pair for $97m at Cosco yard

Singapore-listed First Ship Lease Trust (FSL Trust) has penned a letter of intent with Cosco Shipping Heavy Industry (Yangzhou) Co for the construction of two LR2 product tankers at a total price of $97.2m.

The 114,000 dwt new ships will be fitted with scrubbers and they are expected to be delivered in November 2020 and January 2021 respectively.

FSL Trust said the newbuilding acquisition is part of its fleet renewal plan to enhance the fleet’s commercial attractiveness and marketability.

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“The new vessels will be constructed according to newer designs and utilise new technologies. As the new vessels will be more affordable to operate and able to carry a variety of cargoes, it is expected that they will be more efficient and easier to charter to counterparties compared to the vessels in FSL Trust’s current fleet,” stated FSL Trust Management, the trustee-manager of FSL Trust.

“The new vessels will also be more attractive for long term leases to major petroleum companies, therefore allowing FSL Trust to potentially secure better returns.”

Posted 07 December 2018

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Lee Hong Liang

Asia Correspondent

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