Overseas Shipholding Group, Inc. to Upgrade Engines on Alaskan Class Vessels
14 Dezembro 2023 - 5:31PM
Business Wire
Overseas Shipholding Group, Inc. (the “Company” or “OSG”), a
leading provider of energy transportation, announced a
comprehensive lifecycle engine upgrade (LCU) program for all four
vessels in its Alaskan Class fleet to be achieved through a
contract with MAN Energy Solutions SE. The vessels Alaskan
Explorer, Alaskan Frontier, Alaskan Legend, and Alaskan Navigator,
all approaching 20 years in age, will receive significant engine
and operational improvements, resulting in environmental benefits
as well as extending their commercially useful life.
The lifecycle engine upgrades involve a series of technical and
commercial enhancements, including:
- Engine component replacements with newer, more fuel-efficient
models, leading to reduced fuel consumption and lower greenhouse
gas emissions.
- Installation of advanced control systems and optimization
technologies to allow crews to operate the vessels in a more
efficient manner, maximizing performance while reducing overall
environmental impact.
- Capability to meet Carbon Intensity Indicator (CII) regulations
without sacrificing operational capacity of the vessels for years
to come.
- “Ready for Methanol” capability.
The LCU program is scheduled to begin in early 2024 in
conjunction with plans to reactivate the recently acquired Alaskan
Frontier. The remaining three vessel engine upgrades will be
conducted concurrently with scheduled vessel drydocking periods
through 2026, which will mark the completion of the project.
“The decision to contract with MAN Energy Solutions for engine
Life Cycle Upgrades on all four Alaska class tankers represents a
major investment in the future of our company,” stated Sam Norton,
President and CEO of OSG. “When combined with previously announced
commitments to reactivate the Alaskan Frontier, the aggregate
investment we will be making into our Alaskan fleet over the next
three years will be close to $100 million.”
Mr. Norton continued, “The benefits of this substantial
investment will be multiple. We expect improvements in fuel oil
consumption, which will result not only in substantial cost
savings, but as importantly in an estimated annual reduction of
over 20,000 metric tons of greenhouse gas emissions based on
historical trading patterns for each of these vessels. OSG has set
a target of achieving a 15% reduction in annual CO2 emissions by
2030 and this investment alone should account for roughly one-third
of that target. In addition, the anticipated improved emissions
attained from the engine upgrades should allow all our Alaskan
class vessels to operate in their historical trading patterns while
maintaining compliance with current Carbon Intensity Index (CII)
regulations through at least 2035.”
“The Life Cycle Upgrade is our ‘Roadmap’ solution for the engine
type 48/60 installed on the Alaskan Class,” said Marcel Lodder,
Strategic Sales Manager at MAN PrimeServ. “With the conversion, the
roughly twenty-year-old engines of the Alaskan Fleet will not only
profit from being ready for future fuels but are also reset to
almost completely new condition in combination with today’s serial
new build standards. We are looking forward to performing the
conversions together with Alaskan Tanker Company and being part of
this success story in decarbonization.”
Chris Merten, Chief Operating Officer of OSG’s wholly owned
subsidiary Alaskan Tanker Company added, “These vessels were
originally built with a 40 year design life. With Alaskan crude oil
production expected to increase by as much as 250,000 barrels per
day by the end of this decade, ensuring the extended operating life
of these vessels in compliance with environmental regulations has
been a top priority for us and our customers. The upgrade of these
vessels’ main engines should allow that goal to be achieved over
the next decade, adding years of CII compliance for these vessels
to generate additional cashflows through 2035. Looking out over the
longer term, the methanol fuel option that these upgrades provide
allows possibilities for even longer-term operation should green
methanol fuel availability emerge in the decade ahead.”
Concurrent with entering into contracts with MAN Energy
Solutions, OSG agreed to amend existing charterparties for the
Alaskan Navigator and Alaskan Legend. The amendments modify the
terms of the charterer’s existing extension options and provide for
five additional one-year extension options for each vessel at
agreed rates through 2035.
About Overseas Shipholding Group, Inc
Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly
traded company providing liquid bulk transportation services in the
U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude
oil tankers doing business in Alaska, conventional and lightering
ATBs, shuttle and conventional MR tankers, and non-Jones Act MR
tankers that participate in the U.S. Tanker Security Program.
Headquartered in Tampa, Florida, OSG is committed to setting
high standards of excellence for its quality, safety, and
environmental programs and is recognized as one of the world’s most
customer-focused marine transportation companies. More information
is available at www.osg.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical facts
should be considered forward-looking statements. Words such as
“will”, “plans”, “should”, “expect” and similar expressions are
intended to identify forward-looking statements but should not be
considered as the only means by which these statements may be made.
Such forward-looking statements represent the Company’s reasonable
expectations with respect to future events or circumstances based
on various factors and are subject to various risks, uncertainties,
and assumptions relating to the Company’s operations, financial
results, financial condition, business, prospects, growth strategy
and liquidity. Undue reliance should not be placed on any
forward-looking statements and, when reviewing any forward-looking
statements, consideration should be given to factors including, but
not limited to, those factors discussed in the Company’s Annual
Report on Form 10-K, filed with the SEC on March 9, 2023. Investors
should carefully consider these risk factors and the additional
risk factors outlined in other reports hereafter filed by the
Company with the SEC under the caption “Risk Factors.” The Company
assumes no obligation to update or revise any forward-looking
statements except as may be required by law. Forward-looking
statements in this press release and written and oral
forward-looking statements attributable to the Company or its
representatives after the date of this press release are qualified
in their entirety by the cautionary statement contained in this
paragraph and in other reports hereafter filed by the Company with
the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20231214115252/en/
Investor Relations & Media Contact: Susan Allan,
Overseas Shipholding Group, Inc. (813) 209-0620 sallan@osg.com
Overseas Shipholding (NYSE:OSG)
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