NASSCO Delivers ALASKAN LEGEND to BP Shipping and Finalizes $1 Billion Contract for Nine Product Ca

Published Aug 25, 2006 12:01 AM by The Maritime Executive

NASSCO Shipyard, the west-coast based wholly owned subsidiary of General Dynamics last week delivered its fourth and final double-hulled oil tanker to BP Shipping Ltd. The landmark event followed, but roughly coincided with the finalization of a mega-deal with US Shipping Partners to build as many as 14 product vessels for the U.S. flag operator.

The “ALASKAN LEGEND” will join its three sister vessels in BP’s crude oil service on the United States west coast, starting on August 21. Preceding the delivery of the ALASKAN LEGEND were the NASSCO-built vessels ALASKAN FRONTIER, ALASKAN EXPLORER and ALASKAN NAVIGATOR. The new, double-hulled tanker will have a nominal carrying capacity of 1.3 million barrels of crude oil. Its cargo transfer piping is fitted inside the hull to reduce the possibility of oil spills. Construction started on this latest delivery by NASSCO in October of 2004.

NASSCO’s contract with U.S. Shipping Partners L.P. to build nine product carrier tankers includes options for five additional ships. Building is scheduled to commence on the first tanker in the third quarter of 2007, with delivery to occur no later than the second quarter of 2009. The deal cements NASSCO’s position as the leading builder of Jones Act tonnage in the country today. Additionally, the contract is the largest commercial shipbuilding contract in NASSCO's history.

This class of double-hulled, 49,000 DWT ton product tankers will have a design deep draft of almost 39 feet and will have a nominal cargo capacity of 331,000 barrels. USS already operates a fleet of 10 deep draft tank vessels, as well as 5 double-hulled, articulated tug barges which are on order or under construction. Reportedly, the majority of the USS fleet is engaged under long-term time charters or contracts of affreightment, primarily running in the coastwise, Jones Act trades.