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Torm orders two scrubber-fitted LR2 tankers from GSI

Danish shipowner Torm has ordered two scrubber-fitted LR2 tankers from Guangzhou International Shipyard.

The vessels expected to be delivered by GSI in Q4 2021 cost a total of $95m, including scrubber installations and other design requirements. Torm has raised $76m from an undisclosed international financial institution structured in the from of a sale and leaseback deal.

Scrubbers allow the vessels to comply with IMO 2020 while continuing to burn high sulphur fuel oil (HFO). In the first few weeks of IMO 2020 being in force scrubbers have proved to be profitable option for owners with such systems fitted given the high price spread between HFO and compliant low sulphur fuels.

“I am very pleased that Torm has utilized its long-term relationship with Guangzhou Shipyard International to enter into an agreement to purchase two LR2 newbuildings. These newbuildings will be financed through a flexible and attractive sale and leaseback structure including a repurchase option at the end of the lease period,” said Torm executive director Jacob Meldgaard.

Torm has 29 vessels in its current fleet built at GSI.