Overseas Shipholding Group to upgrade engines on Alaskan Class vessels
Overseas Shipholding Group, Inc., 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, according to the company's release.
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.
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.
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.
