MISC will become the third owner of VLEC tonnage when 6 VLECs under construction in South Korea are delivered later this year. (Image: MISC owned and operated LNG carrier Seri Cempaka, credit: MISC Berhad)
Malaysian energy shipping group MISC Berhad has reached an agreement with Zhejiang Satellite Petrochemical (STL) to acquire six very large ethane carriers once construction is completed.
The construction of the six VLECs is evenly distributed between Samsung Heavy Industries and Hyundai Heavy Industries in South Korea. The vessels will commence long-term 15-year charters to STL in the last quarter of 2020, supplying feedstock for STL’s ethane cracker in China from a Texas export facility. The sale price of the VLECs was confirmed at approximately US$726 million.
AET chairman and MISC Berhad president and Group CEO Mr Yee Yang Chien cited the deal as a milestone for the ethane transportation market. “Adding to the strength and expansion of our existing fleets as well as diversifying our portfolios, we are now the proud owner of six VLECs – which are the largest vessels of its kind, aside from the existing seven VLECs in the world. As one of the only three owners of such vessels in the world, this new addition to our fleet would strengthen MISC’s competitive advantage in this segment,” he added.