COSCO Shipping Energy Transportation has signed a supplemental agreement with Dalian Shipbuilding Industry (DSIC) to convert a very large crude carrier (VLCC) to run on liquefied natural gas (LNG).
The vessel is one of four VLCCs ordered by the Chinese shipping giant from DSIC in 2017. It will be equipped with a dual fuel LNG propulsion system and Cosco is spending an extra US$6 million on the upgrade.
However, the ship's delivery has been delayed from March 2021 to December 2021.
"The inclusion of dual fuel technology in the construction of the relevant VLCC which allows it to utilise LNG as fuel will enable the company to prepare for the more stringent carbon dioxide emission standards under phase three of the implementation of the EEDI in advance, and provide the company with a new solution to the imposition of the global sulphur limit," Cosco said.
The company has six VLCCs on its orderbook.
Earlier this year, Cosco and DSIC jointly launched a project to develop the LNG dual-fuel VLCC, which is expected to cut carbon emissions by one-fifth and sulphur emissions by 95 per cent compared to conventional fuel.