The four vessels will be delivered before end 2024. The agreement was signed at the company’s office in Abu Dhabi by Y. K. Jang, CEO of K Shipbuilding, and Gunther Alvarado, Chief Operating Officer of Al Seer Marine. Image Credit: Supplied

Dubai: Part of International Holding Co, Abu Dhabi’s Al Seer Marine has placed orders for four new IMO II/III product tankers for Dh643 million. These vessels will be built at South Korea’s K Shipbuilding yard.

Deliveries are expected before end 2024.

Al Seer Marine’s fleet totals 12 vessels as the company prepares to transport the transition fuels like methanol, which will help the industry reach net zero. In anticipation of the impending regulatory changes, these tankers will be LNG-ready and designed to be potentially ready to adapt to new fuels such as ammonia and methanol.

“Al Seer Marine is very serious about becoming a global market leader across different marine sectors,” said Guy Neivens, CEO of Al Seer Marine. “Our team is pushing hard, this is yet another endorsement of our global expansion strategy. We are working together with our partners to fulfill the need for modern and efficient tonnage in the markets we serve.”

Al Seer Marine’s strategic plan set out to grow its business and deploy capital to attain the ‘best long-term RoI with IRR over 20 per cent over 10 years’.

“Demand for tankers has been on the rise since April this year, and building new ships is not something the industry can reverse overnight,” said Y. K. Jang, CEO of K Shipbuilding. “We are confident we will be able to deliver this order on schedule.”

Economists point to the need to build new ships to meet the pending environmental regulations forecasting that shipbuilding orders will rebound in 2024, and today’s Al Seer Marine order confirms the market demand.

- Y. K. Jang of K Shipbuilding