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General Dynamics NASSCO signalled the start of construction of a third 'eco' tanker to be built for American Petroleum Tankers at a steel cutting ceremony at NASSCO's San Diego-based shipyard.

Each of the five 50,000-deadweight-tonne (dwt) product carriers to be constructed by NASSCO are to be LNG-conversion ready and carry 330,000 barrels of cargo. With a specialized eco design, NASSCO says the tankers will be more energy efficient and incorporate environmental protection features, including a Ballast Water Treatment System.

"This is an exciting time in the U.S. maritime industry. These Jones Act product tankers demonstrate implementation of state-of-the-art design technologies that achieve world-leading fuel efficiencies and also represent new jobs in our shipyard," commented Parker Larson, director of commercial programs for NASSCO.

NASSCO began construction on the first tanker under the current contract with American Petroleum Tankers in September 2014.

"We are very pleased to be commencing construction of our third ECO Class tanker at NASSCO. These world class vessels will be a welcome addition to the APT fleet as we continue to strive toward providing our customers with the highest level of service," said Rob Kurz, president of American Petroleum Tankers.

The new construction and operation of the new vessels are aligned with the Jones Act, requiring ships carrying cargo between U.S. ports to be built, crewed and owned by the U.S.

"The five-tanker contract is instrumental in helping to sustain and grow NASSCO's workforce of nearly 3,800," the company said.