US shipbuilder General Dynamics NASSCO held a steel cutting ceremony for the third Jones Act "ECO" tanker to be built for American Petroleum Tankers at its San Diego-based shipyard.

A part of a five-tanker contract, this 50,000dwt product carrier will be LNG-conversion ready and will carry 330,000 barrels of cargo. The tanker will also be equipped with a Ballast Water Treatment System.

NASSCO began construction on the first tanker under the current contract in September 2014.

"This is an exciting time in the US 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," said Parker Larson, director of commercial programs for NASSCO.