Philly Shipyard signs non-binding agreement for tanker order

On July 16, Philly Shipyard signed a non-binding term sheet with an undisclosed potential buyer for the construction of two 50,000DWT product tankers.

If built, these vessels will be similar to a recently completed series of eight product tankers delivered by Philly Shipyard, except the main engines will be upgraded from Tier II to Tier III compliant.

The transaction is subject to agreement by the parties on definitive documentation and fulfilment of certain closing conditions, including, but not limited to, securing commitments for charters.

The term sheet provides for a period of exclusivity to negotiate and complete the transaction.

In order to support the delivery timetable, Philly Shipyard has initiated preliminary design work for the vessels.

However, it has not been confirmed that Philly Shipyard will obtain contracts or financing for this project.

The Jones Act-compliant vessel will have deliveries scheduled in the last quarter of 2020 and first quarter of 2021, respectively.