Commodity trader Louis Dreyfus Co (LDC) is planning to charter in its first LNG-fuelled tanker newbuilding, which is set to be ordered in China.
Brokers named LDC as the charterer behind a soon-to-be inked MR tanker at Chengxi Shipyard Co in Jiangyin city.
The lone newbuilding, and an option for a second vessel, are due to be ordered by China’s CSSC Leasing in what could be a groundbreaking order for the CSSC-controlled shipyard.
One priced the vessel at between $42m and $43m, with an implied extra cost of $11m to $12m for dual-fuel propulsion.
The broker pointed out that the economics do not stack up as easily for smaller tankers compared with larger vessels, such as VLCCs, and suggested that the vessel is likely being ordered to trade in the emission control areas of northern Europe.
When contacted by TradeWinds for confirmation and comment, LDC said it “does not comment on such matters”.
In its latest sustainability report, Ian McIntosh-led LDC listed one of the projects it completed as a study of “chartering dual LNG/gasoil propelled vessels”.
The company said it has developed a detailed ship specification for a reduced emissions LNG-fuelled tanker in collaboration with a shipowner and yard.
“Independent assessment by Lloyd’s Register has predicted that, according to current IMO regulations, this LNG-fuelled design would deliver a 25% reduction in CO2 emissions spared to a conventional ship consuming very low-sulphur fuel oil operating on our trade routes,” LDC said.
“This means that the design is significantly more efficient than current regulations already exceeds IMO requirements that enter into force in 2025.”
LDC’s report detailed that the company has missed its target to reduce the CO2 emissions from its fleet by 5% per tonne-mile when comparing its 2019 actual emissions to the notional data for the previous year.
The company, which has also been looking at biofuels and wind propulsion technology, said it had set a new emissions reduction target for its fleet that will reduce CO2 emissions per tonne-mile from 2019 levels every year through to 2022.
LDC operates a fleet of around 200 chartered vessels for its own business and third-party customers.
The company charters bulkers from handysize through to capesize, containerships, and takes in tanker tonnage for its vegetable oil, palm oil and ethanol shipments.
