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Chinese Shipbuilder Receives Largest Single Tanker Order from Dynacom

largest product tanker order
Dynacom returned to China placing the largest product tanker order for Dalian Shipbuilding (Dynacom)

Published May 4, 2023 7:27 PM by The Maritime Executive

The recovery in the oil and energy markets is contributing to a sudden rush for new tanker construction orders. The segment had been deferring replacement tonnage during the prolonged downturn and now like the containership lines before them are scrambling to secure building slots. The Chinese shipyards are benefiting from the surge booking large numbers of new tankers and filling building slots to 2025 and beyond.

Dalian Shipbuilding, a subsidiary of China State Shipbuilding Corporation, and China Shipbuilding Trading confirmed that it has entered into a new building contract with Greece’s Dynacom group for a total of 10 newbuild 115,000 dwt product tankers. The shipyard is reporting that the contract is the largest batch of oil tanker orders signed at one time this year, and is also the largest single oil tanker order in the history of Dalian Shipbuilding.

Dynacom Tanker Management reports it currently has a fleet of 70 vessels under management to transport both crude and oil products. The company headed by well-known shipping tycoon George Procopiou has a history with CSSC having built tankers, bulkers, and FSRU units with the different divisions of the shipbuilder. Last year, Dalian delivered two 307,000 dwt VLCC crude oil tankers to Dynacom.

Dalian reports that it analyzed the needs of the tanker segment and adjusted its negotiation strategies and technical capabilities to position it as a leader in the segment. The group says that its main dock is now scheduled until 2027. The new tankers for Dynacom will be built at the group’s Shanchuan Heavy Industry yard. So far in 2023, Shanchuan has booked orders for 20 medium-size bulk cargo and oil tankers.

The Dynacom tankers will use Dalian’s LR2 design independently developed by the shipyard. Each vessel will be about 820 feet in length and a beam of approximately 145 feet. Dalian reports the success of the design has led to more than 50 orders from domestic and international shipowners for the LR2 tanker. The ships feature low power consumption with the main equipment, including the engines and boilers, optimized for overall performance. The design also achieves a high environmental rating.