Benzinga | Mar 11, 2021 06:40AM EST

International Seaways Announces Contract to Build Three Dual-Fuel LNG VLCCs

International Seaways, Inc. (NYSE:INSW) (the "Company" or "INSW"), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today announced that it has entered into an agreement to build three dual-fuel LNG VLCCs. The three vessels will be constructed at leading South Korean shipyard DSME and are expected to deliver in 2023.

Upon delivery, the three vessels will commence seven-year time charters with Shell. The Company expects to fund the construction costs with cash and long-term financing.

"We are pleased to partner with market leading counterparty Shell on these three dual-fuel LNG VLCCs," said Lois K. Zabrocky, International Seaways' President and CEO. "In addition to generating strong, stable cash flows for seven years, with added upside due to profit sharing above the base rate, we are once again renewing our fleet at very attractive levels. Importantly, we expect these tankers to be well suited to adhere to future environmental regulation throughout their life, as they meet both today's IMO Energy Efficiency Design Index ("EEDI") and also exceed the 2025 Phase III EEDI targets by about eight percent. Their significant environmental benefits, including substantially reducing our carbon footprint, are in keeping with Seaways' commitment to ESG-focused corporate citizenship, and we are proud to continue to be at the forefront of sustainability initiatives in the maritime sector."