Scorpio Tankers Inc. (“Scorpio Tankers” or the “Company”) announced that following its entry into an agreement to retrofit 15 of its LR2s with Exhaust Gas Cleaning Systems (“Scrubbers”), it has agreed letters of intent, which are subject to the execution of definitive documentation, with suppliers, engineering firms, and ship repair facilities to cover the purchase and installation of Scrubbers on substantially all of its remaining owned and financed leased LR2, LR1, and MR tanker vessels (approximately 75 vessels) between the second quarter of 2019 and the second quarter of 2020.
The Scrubbers and their installation are expected to cost between $1.5-$2.2 million per vessel, and the Company anticipates that between 60-70% of these costs will be financed.
Emanuele Lauro, Chairman & CEO, commented “We have long maintained that the IMO 2020 regulations are both disruptive to the shipping industry generally as well as a powerful demand catalyst for product tankers.
Although many well-capitalized and publicly-listed shipowners can source capital and publicize their intentions to pursue Scrubbers, most of our industry cannot, and will rely on cleaner fuels to the benefit of ton-mile demand for product tankers.
Irrespective, our focus remains on operating the most competitive fleet in our marketplace, and this has led us to carefully evaluate and ultimately opt for the benefits of fitting hybrid-ready scrubbers on approximately 90 ships in our fleet.”