Greek shipping company Tsakos Energy Navigation (TEN) has placed an order for six LNG-powered tankers at South Korean shipyard Daehan Shipbuilding.

As disclosed, the contract covers four Aframax crude oil carriers and two optional LR2 petroleum product carriers. The total price tag of the vessels is KRW 500 billion ($417 million), which is the largest contract since the Daehan Shipbuilding was established, the company revealed.

The agreement is currently on hold for around four months due to the steep rise in steel prices that nearly doubled compared to last year.

The vessels will feature a dual-fuel engine capable of running on LNG and conventional fuel, which is expected to reduce carbon emissions. The construction of the ship is planned to start in September 2022, while the delivery of the tankers is scheduled between September and December 2023.

Daehan Shipbuilding completed technology development for LNG-powered ships in 2018. Meanwhile, the firm received approval in principle (AiP) for LNG bunkering ships and for small LPG carriers from classification society DNV.

Prior to the AiP, Daehan and DNV had teamed up in a joint development project (JDP) on small-size LPG carriers using LPG as dual fuel.

“LNG- powered ships have been considered as the most efficient alternative to existing ships since the IMO tightened environmental regulations, they are expected to lead the eco-friendly ship market before the development of ammonia ships. Therefore, securing orders for LNG-powered ships is an important task for the company to secure future competitiveness,” Daehan Shipbuilding stated.