Scorpio Tankers is widening its fleet renewal programme across three tanker segments, taking a minority stake in eight VLCC newbuilds and adding two LR2 product tankers, according to Splash247.
VLCC Venture and LR2 Orders
The New York-listed owner signed a letter of intent in July for two scrubber-fitted LR2s at Jiangsu Hantong Ship Heavy Industry. The vessels are priced at $72.8 million each and are scheduled for delivery in the second and third quarters of 2029.
Scorpio has also agreed to acquire a stake of less than 15% in a joint venture with eight scrubber-fitted VLCCs under construction. Deliveries are scheduled between the third quarter of 2029 and the second quarter of 2030. The company did not identify its partner, the shipyard, or the value of the VLCC contracts. Scorpio will fund its share of the equity as instalments fall due.
MR Newbuildings and Financial Context
Separately, the Emanuele Lauro-led company completed agreements in June for two scrubber-fitted MR newbuildings at Jiangsu Yangzi-Mitsui Shipbuilding. The ships cost $46.33 million each and are scheduled for delivery in the first quarter of 2030. Apart from a 10% deposit, no further payments are due before 2028.
The latest moves take Scorpio’s directly controlled newbuilding programme to 14 ships, comprising six MRs, six LR2s and two VLCCs. The company also has exposure to the additional eight VLCCs through the new joint venture. It had paid $97.2 million towards the programme by July 28, with another estimated $978.2 million due, including its share of the VLCC venture.
| Vessel Type | Shipyard | Price (each) | Delivery Timeline |
|---|---|---|---|
| LR2 (2 units) | Jiangsu Hantong Ship Heavy Industry | $72.8 million | Q2 & Q3 2029 |
| VLCC (8 units, JV) | Not disclosed | Not disclosed | Q3 2029 – Q2 2030 |
| MR (2 units) | Jiangsu Yangzi-Mitsui Shipbuilding | $46.33 million | Q1 2030 |
| LR2 (4 units, previous) | Dalian Shipbuilding | $70.8m / $68.5m | Q3 2027 / H2 2029 |
| MR (4 units, resale) | Jingjiang Nanyang Shipbuilding | $45 million | 2026–2027 |
| VLCC (2 units) | Hanwha Ocean | $128 million | Q3 & Q4 2028 |
Existing Pipeline and Older Tonnage Sales
Scorpio’s existing pipeline includes four LR2s at Dalian Shipbuilding. The first pair, priced at $70.8 million each, is due in the third quarter of 2027, while two option vessels costing $68.5 million apiece will follow in the second half of 2029. Four $45 million MR newbuilding resales at Jingjiang Nanyang Shipbuilding are joining between 2026 and 2027.
The company returned to crude tanker newbuildings last year with two $128 million VLCCs at Hanwha Ocean, scheduled for delivery in the third and fourth quarters of 2028. The deal marked Scorpio’s first VLCC order since it sold seven newbuilding contracts in 2014.
The expansion was disclosed alongside second-quarter net income of $387.5 million, compared with $73.5 million a year earlier. Adjusted profit came in at $243.7 million, while average daily TCE earnings more than doubled to $52,661 per vessel.
Scorpio has continued to sell older tonnage as the new ships are added. The company completed the sale of 10 vessels for $465 million during the second quarter and another five for $320.8 million in July, leaving a fleet of 74 product tankers comprising 25 LR2s, 35 MRs and 14 handymaxes.
Implications for Tanker Shipping Operations
For freight forwarders and logistics managers monitoring tanker capacity, Scorpio’s aggressive newbuilding programme signals a significant increase in modern, scrubber-fitted tonnage entering the fleet from late 2027 through 2030. The VLCC exposure, though minority, adds crude-carrying capacity that could affect spot rates on major crude routes such as the Middle East to Asia or the Atlantic Basin. The LR2 and MR orders strengthen product tanker supply, potentially easing tightness in clean petroleum product shipping. However, the concurrent sale of older vessels offsets some capacity growth, with 15 vessels sold for a combined $785.8 million in the second quarter and July. Operators should watch delivery schedules closely, as yard delays could shift vessel availability. The undisclosed VLCC partner and shipyard also introduce uncertainty around quality and timing. Scorpio’s strong earnings, with TCE rates more than doubling year-over-year, suggest the company is capitalising on favourable market conditions to lock in lower-priced newbuilds.
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