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Hafnia says another tie-up in the making while praising Diamond S-Norden consolidation move

June 19, 2020

Product tanker owner and operator Hafnia, a member of the BW Group, will soon enter a new product tanker segment with industry peers, established under the name of Hafnia Specialized, the company revealed.

This business will handle tonnage below 25,000-dwt, Hafnia said, adding that more precise information will follow in the weeks to come.

The consolidation move is being revealed on the back of a partnership being announced between Diamond S and Norden to consolidate their respective product tanker fleets.

Under the arrangement, Diamond S will initially contribute 28 medium range (MR2) product tankers to the endeavour, which will be marketed and operated through the Norient Product Pool (NPP).

Pro forma the contribution of DiaNor ships, the Norient Product Pool will manage approximately 150 tankers and become one of the largest operators of medium range (MR) product tankers in the world, the duo said.

“We are pleased to see continued interest in consolidating the product tanker segments since last year’s merger between BW Tankers and Hafnia – the biggest fully-fledged product tanker merger to date,” the company said in a release.

“Expansion of pools through commercial alliances demonstrates that our peers also recognise the value in market consolidation. With this week’s activity in the MR segment, the industry stands more robust as it strives to rebuild the balance between supply and demand in the face of reduced oil consumption. Hafnia sees slightly positive market signals pointing towards a better recovery than expected by most, with airlines, businesses and critical infrastructure opening up again faster than anticipated in many parts of the world. “

In 2019, Hafnia Tankers and BW Tankers Limited completed their merger, creating one of the world’s largest owners and operators of product tankers.

The merged company owns and operates a fleet consisting of 102 product tankers, four newbuildings and three product tanker pools, managed by Hafnia Management and Straits Tankers with vessels in the LR2, LR1, MR and SR segments. The global company has offices in Singapore, Copenhagen and Houston and presence in Mumbai.

The post Hafnia says another tie-up in the making while praising Diamond S-Norden consolidation move appeared first on Offshore Energy.