Eastern Pacific Inks 15-year VLEC Charter Deal

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Singapore based Eastern Pacific Shipping wins dual fuelled ethane carrier deal as US-China trades rise, reports Lloyd’s List.

Ethane carrier deal

EASTERN Pacific, the Singapore-based shipmanagement company won a bid to build and operate four VLECs.

The company will build and operate four 98,000 cu m very large ethane carriers for a Chinese petrochemical company that is about to start shipping regular cargoes of the refrigerated gas from the US Gulf.

China’s export dominance 

The 15-year deal with Zhejiang Satellite Petrochemical underscores China’s rising dominance in US ethane export trades.

The deal will see as much as 150,000 bpd of ethane heading for two ethane steam crackers in China.

The first steam cracker comes online in the second quarter of 2021.

GHG emission reduction

All four VLECs will feature dual fuel ethane propulsion which will reduce greenhouse gas emissions when compared to conventional marine fuels.

“We are extremely pleased to partner with STL and enter the ethane carrier segment, as both companies share a vision of being the green and technology-driven leaders in our respective industries,” said Cyril Ducau, EPS CEO.

The VLECs will be built at South Korea’s Hyundai Heavy Industries and Samsung Heavy Industries and are scheduled for delivery in the first half of 2022. 

Alternative marine fuel

“This deal also serves as an example of our commitment to using alternative marine fuels as transitional fuels towards decarbonisation and the preservation of the environment for future generations. This 15-year charter is a major milestone for us that will strengthen our foundation as we grow and diversify our fleet.”

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Source: Lloyd’s List

 

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