Kyoei Tanker Expands Fleet with New VLCC Order
Japanese shipping company Kyoei Tanker has announced a significant expansion of its Very Large Crude Carrier (VLCC) fleet by ordering a new 310,000-ton vessel from Japan Marine United’s Ariake yard. The delivery of this newbuild is scheduled for 2029. This strategic move comes as part of Kyoei’s broader fleet renewal strategy, aimed at maintaining a strong presence in the crude tanker market.
The decision to acquire the new vessel was confirmed following board approval and the final sign-off by partners late last year. Kyoei Tanker has opted for a shared ownership structure for this acquisition, although the company has not disclosed the contract price, citing confidentiality. However, it has indicated that the cost aligns with current market levels. The funding for this newbuild will be sourced through a combination of internal resources and bank financing.
Current Fleet and Future Plans
Kyoei Tanker currently operates a fleet that includes six VLCCs, two Very Large Gas Carriers (VLGCs), one bulk carrier, and one LPG carrier, with another newbuild set for delivery in 2027. Additionally, its Singapore-based affiliate manages three LPG carriers, two bulkers, and one Medium Range (MR) tanker. This latest order marks Kyoei’s first foray into VLCC acquisitions since 2019, when it placed contracts with Namura Shipbuilding.
The new vessel will either be owned directly by Kyoei or through a consolidated subsidiary in which Kyoei holds a 70% stake. This approach reflects the company’s commitment to enhancing its operational capabilities and ensuring long-term growth in the crude tanker sector.
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Japan Marine United, the shipyard responsible for constructing the new VLCC, has a history of delivering vessels to Kyoei Tanker, with two VLCCs handed over in 2018 and 2020. Recently, Japan Marine United came under the control of Imabari Shipbuilding, which now holds a 60% stake in the yard group, further solidifying its position in the maritime industry.
Kyoei Tanker’s investment in this new VLCC underscores its dedication to fleet modernization and its strategic focus on the crude oil transportation market. As the company prepares for the future, it aims to leverage its expanded fleet to meet the evolving demands of the shipping industry.
