Four vessels worth 1.4 billion yuan! K Shipbuilding “snags” its first order of the new year at the last minute.

As January draws to a close, South Korea’s mid-sized shipbuilder K Shipbuilding has finally secured its first new ship order of the year.

On January 30, K Shipbuilding (formerly STX Shipbuilding & Marine) announced that it had signed construction contracts with European shipowners for two additional 50,000-ton MR-type product oil tankers, with a total contract value of approximately 290 billion Korean won (about US$203 million or RMB 1.41 billion), equivalent to a unit cost of US$50.75 million per vessel.

For reference, Clarkson’s data show that the current price of a new MR-type product oil tanker with a deadweight tonnage of 47,000 to 51,000 tons is approximately US$49.5 million, down 5% from US$52 million in the same period last year.

This MR-type refined oil tanker features an LNG-ready and methanol-ready design, allowing it to be easily converted in the future to use environmentally friendly fuels such as LNG or methanol. It is an eco-efficient vessel that meets the requirements of Phase III of the International Maritime Organization’s (IMO) Energy Efficiency Design Index (EEDI), which will take effect in 2025.

It’s worth noting that the two+two MR-type product oil tanker orders recently secured by K Shipbuilding came from “repeat customers.” This once again underscores the trust that long-standing clients have in K Shipbuilding’s technical prowess and construction quality, making it highly significant.

A source from K Shipbuilding stated: “This order was received from an existing contract shipowner, once again confirming the company’s technological prowess and competitive quality. We will further strengthen our trust-based relationship with customers by delivering high-quality vessels on schedule.”

In 2025, K Shipbuilding secured new ship orders for 15 vessels (including 1 optional order), with a total value of approximately 128 billion Korean won (about US$877 million or RMB 6.2 billion). Among these, 12 are MR-type product oil tankers.

For a long time, K Shipbuilding has primarily focused on mid-sized oil tankers, including 50,000-ton MR-type tankers and 115,000-ton Aframax tankers. In recent years, the company has consistently ranked high in the number of MR-type tanker orders it has secured. From 2021 to 2025, among the total 83 new ship orders that K Shipbuilding has taken on, as many as 53 were MR-type tankers, accounting for nearly 64%.

In recent years, in response to the IMO’s new environmental regulations and to meet the global demand for environmentally friendly vessels, K Shipbuilding has leveraged its extensive experience and proven track record in building and delivering medium-sized product oil tankers to actively develop MR-type oil tankers powered by eco-friendly fuels, achieving remarkable results.

In November 2018, K Shipbuilding’s 50,000-ton LNG-powered dual-fuel MR-type oil tanker received the Approval in Principle (AIP) certificate from Lloyd’s Register (LR) in the UK. In October 2021, K Shipbuilding signed a construction contract with Louis Dreyfus Company for one additional vessel of this type, marking its official entry into the eco-friendly shipbuilding market. In November 2022, K Shipbuilding further secured a construction contract with Al Seer Marine, an Emirati shipowner, for four more vessels of the same design. In May 2023, the MR-type oil tanker design powered by dual-fuel ammonia, developed by K Shipbuilding, obtained the AIP certificate from LR. In June 2023, the conceptual design of an MR-type oil tanker powered by dual-fuel methanol, also developed by K Shipbuilding, received the AIP certificate from the Korean Register (KR). In November 2023, the conceptual design of an MR-type oil tanker equipped with a hybrid engine capable of burning hydrogen and LNG, developed by K Shipbuilding, was granted the Approval in Principle (AIP) certificate by RINA, the Italian classification society. This January, the MR-type oil tanker design powered by dual-fuel ammonia, developed by K Shipbuilding, received the Approval in Principle (AIP) certificate from the American Bureau of Shipping (ABS).

To date, K Shipbuilding has successfully developed four types of green MR-type oil tankers: an LNG dual-fuel-powered MR-type oil tanker, an ammonia dual-fuel-powered MR-type oil tanker, a methanol dual-fuel-powered MR-type oil tanker, and an MR-type oil tanker powered by a hydrogen/LNG blended fuel system.

K Shipbuilding stated that, driven by the rising market demand for its flagship MR-type oil tankers and increasingly stringent environmental regulations imposed by the IMO, there continues to be strong demand for ship upgrades and replacements in the market, making the company’s development prospects relatively optimistic.