JULY 17, 2018 — Philly Shipyard, Philadelphia, PA, and an as yet undisclosed customer yesterday executed a non-binding term sheet for the construction and sale of two newbuild Jones Act Medium Range (MR) product tankers with targeted deliveries in the fourth quarter of 2020 and first quarter of 2021.
If built, the vessels will be substantially similar to the recently completed series of eight MT-50 class product tankers delivered by Philly Shipyard, though 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 fulfillment 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.
The shipyard disclosed the agreement as a “subsequent event” in its most recent quarterly report, which you can download HERE