Scorpio Tankers Boosts Fleet with VLCCs and LR2s

Scorpio Tankers, a prominent product tanker owner, is reshaping its fleet with a significant investment in newbuildings. According to TradeWinds, the company has placed orders for two Very Large Crude Carriers (VLCCs) and four Large Range 2 (LR2) product tankers, spending a total of $415.6 million.

New VLCC Orders

Scorpio Tankers has recently doubled its directly controlled VLCC orderbook by acquiring two scrubber-fitted VLCCs from Hengli Shipbuilding in Dalian, China. According to Splash 247, each VLCC is priced at approximately $135 million and is scheduled for delivery in September and October 2028. This brings the total number of VLCCs directly controlled by Scorpio Tankers to four.

LR2 Orders

Scorpio Tankers is also expanding its LR2 fleet by ordering four new LR2 product tankers, equipped with scrubbers. Two of these LR2s are being constructed at Jiangsu Hantong Ship Heavy Industry in China, with deliveries expected in October and November 2029, as reported by Seatrade Maritime News. Each LR2 is priced at approximately $72.8 million. Additionally, the company has a letter of intent for another two LR2s at the same yard, with deliveries expected in the second and third quarters of 2029.

Fleet Reduction

As part of its fleet reshuffle, Scorpio Tankers is actively reducing its older tonnage. The company has agreed to sell three product tankers for a combined $180.5 million, according to Splash 247. The 2014-built scrubber-fitted MR STI Dama will be sold for $37.5 million, while the 2014-built LR2 STI Elysees and the 2015-built STI Veneto will fetch $70 million and $73 million, respectively. All three transactions are expected to close before the end of the year.

Strategic Fleet Management

Scorpio Tankers' strategic approach to fleet management is evident in its recent activities. The company has been particularly active in recycling its fleet over the past year, as noted by Splash 247. In May, the company agreed to offload four LR2s for $285.8 million while adding another two MR newbuildings in China. This current investment of $415.6 million in newbuildings underscores Scorpio Tankers' commitment to maintaining a modern and efficient fleet.

What this means for operators: The significant investment by Scorpio Tankers in new VLCCs and LR2s reflects the ongoing trend of fleet modernisation and expansion in the tanker sector. Operators should be aware of the growing capacity in the VLCC and LR2 segments, which could impact charter rates and market dynamics. Additionally, the sale of older tonnage highlights the industry's focus on fleet efficiency and compliance with environmental regulations.

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