Odfjell to Cancel Four Gas Carriers at Nantong

Odfjell Odfjell is likely to cancel the four 17,000 cbm gas carriers at Nantong Sinopacific, the company said, following recent discussions with the shipbuilding yard related to the delayed construction of its eight LPG/Ethylene vessels on order. Namely, the company has four 17,000 cbm gas carriers and four 22,000 cbm gas carriers on order at Nantong. The first vessel would in such case be cancelled during May, and the remainder to follow about every third months thereafter. Odfjell said that all installments paid on the newbuildings are secured by refund guarantees from reputable financing institutions. According to the latest updated production schedule from the yard, the first 22,000 cbm gas carrier has planned delivery in April 2017 while the contractual delivery is in September 2016. In 1Q16 Odfjell has made an impairment of USD 2.75 mill related to the newbuilding programme, the company said. We are evaluating our strategic options for our investment in gas carriers, Odfjell adds.