EASTERN Pacific Shipping has ordered a series of three dual-fuel LPG carriers at Hyundai Mipo having won a long-term time charter from Norwegian oil major Equinor.

While the order is in line with EPS’ strategic preference towards dual-fuel designs, the deal marks something of a shift for the Singaporean giant in the gas sector where it has traditionally tended towards tanker spot market plays.

The tie-up with Equinor is being touted by insiders as an alignment of values between the two companies with a solid four-to-five year time charter with options to extend the charter.  

EPS has led the charge in recent years towards more expensive and efficient liquefied natural gas dual-fuel order options, while Equinor, formerly Statoil, has been one of the leading charterers of LNG and LPG-fuelled tonnage. 

Equinor launched the tender three months ago for the series of three 40,000 cu m design vessels which will be delivered by South Korea’s Hyundai Mipo in 2022. While contract prices were not disclosed, Lloyd’s List understands that the vessels commanded a $5m premium on standard mid-sized gas carriers because of the slightly larger capacity and dual-fuel specification. 

The deal also solidifies EPS’ position as a leader in the niche medium-sized LPG segment by adding to its existing fleet of 11 gas carriers. These 11 vessels include the three LPG tankers acquired from Neu in September 2019 and the delivery of two medium-sized gas carriers from Hyundai Mipo Dockyard earlier this year.

The completion of the deal, which was announced formally on Tuesday, is also notable for being one of the first major newbuilding deals to be finalised under lockdown conditions.

Lloyd’s List understands the entire deal was conducted with no face-to-face meetings taking place because of the coronavirus restrictions, leaving company executives, yard officials, financiers and lawyers having to negotiate the entire deal via online video calls and email.