Philly Shipyard Delivers Fourth and Final Product Tanker to Kinder Morgan

Philly Shipyard, Inc. (PSI), the sole operating subsidiary of Philly Shipyard ASA (Oslo: PHLY), today delivered the American Pride, the fourth of four next generation 50,000 dwt product tankers that it has built for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan, Inc. The vessel was delivered ten days ahead of the contract delivery date.

This delivery is the 28 th vessel built by PSI (formerly known as Aker Philadelphia Shipyard, Inc.). The next generation 50,000 dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessel has also received LNG Ready Level 1 approval from the American Bureau of Shipping (ABS). The 600-foot tanker has a carrying capacity of 14.5 million gallons of crude oil or refined products.

The American Pride , like its three sister ships, was originally under contract with Philly Tankers, a Jones Act shipping company established in June 2014 by Philly Shipyard and certain other investors to provide major oil companies and other end-users with modern tonnage. In August 2015, Philly Tankers entered into definitive agreements with APT for the assignment by Philly Tankers of its shipbuilding contracts and related assets to APT.

“We are proud to deliver the final product tanker in the four ship series for American Petroleum Tankers that began with the promotion by Philly Shipyard of a new Jones Act shipping venture, Philly Tankers, over three years ago,” remarked Steinar Nerbovik, Philly Shipyard’s President and CEO. “As American Pride leaves our dock, there is a piece of each and every one of us at the yard that leaves with her. We celebrate this achievement and wave farewell as she joins the other 27 Jones Act vessels built here in Philadelphia that are currently servicing America’s ports.”

This delivery also marks the successful conclusion to an innovative plan by PSI to invest in eight Jones Act product tankers with an approximate contract value of USD 1.0 billion through the PSI-Crowley joint venture (Hulls 021-024) and Philly Tankers (Hulls 025-028). In line with its business strategy, Philly Shipyard will continue to evaluate opportunities to participate in the post-delivery economics of the ships that it constructs, including the container vessels contemplated by the previously announced Letter of Intent with TOTE Maritime.