Hyundai Mipo, which has already built 12 tankers in the DIS fleet, will hand over the 75,000-dwt ships in mid-2017 for $44m each.

Its Hyundai Vinashin yard in Vietnam will construct the eco-ships, DIS said. The shipowner is currently an MR2 specialist.

DIS CEO Marco Fiori said industry trends were pointing to an expansion of tonne-mile demand.

"In this context, I believe LR1s, with their larger cargo capacity, will be in great demand in the years to come, thanks to their ability to carry larger quantities on the same distances," he added.

"In