- New Long-Term Charter Contracts Signed for Two VLECs.
- MOL Strengthens Position in the Ethane Shipping Market.
- Samsung Heavy Industries to Build Advanced Vessels.
Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) announced that its group company, MOL Energia Pte. Ltd. (Managing Director: Miki Ogura; Head Office: Singapore), has entered into long-term charter agreements with SCG Chemicals (SCGC). SCGC, a subsidiary of the Siam Cement Group (SCG), is a major integrated chemical business in ASEAN. The deal, signed on March 17, comprises two extremely large ethane carriers (VLECs), along with three ships already chartered on January 24, reports.
Expanding MOL’s Footprint in the Ethane Carrier Market
With this new contract, the total number of specialized liquefied ethane carriers operated and managed by the MOL Group will be 14. Out of the around 90 ethane carriers in operation or on order globally, MOL is continuing to increase its presence in this niche market.
The two new 100,000m³ VLECs will be constructed by South Korea’s Samsung Heavy Industries Co. and will be delivered in 2028, in addition to the January contract vessels.
State-of-the-Art, Environmentally Friendly Vessel Design
The new-built VLECs will have ethane dual-fuel propulsion engines, with greenhouse gas, sulfur oxide, and nitrogen oxide emissions less than half of the conventional fuel oil-powered ships. This is in harmony with international sustainability targets and MOL’s policy of environmentally friendly maritime operations.
Boosting Vietnam’s Petrochemical Industry
The five brand new VLECs will, on delivery, be deployed in shipping ethane for SCGC’s petrochemical facilities in Vietnam. MOL, by securing safe and reliable transport of ethane, looks to secure the petrochemical sector of Vietnam and stimulate economic development within the region.
MOL will draw on its decades of liquefied gas shipping experience, including LNG, to safely and reliably operate these ships. The company is committed to satisfying the increasing demand for the transportation of ethane while upholding high safety standards.
Strategic Business Expansion Under BLUE ACTION 2035
As part of its long-term management strategy, BLUE ACTION 2035, MOL seeks to build up stable long-term profits and develop its business by regional strategies. With its vast overseas network and its experience in liquefied gas transport, MOL continues to solidify its position as a global social infrastructure group.
Understanding Very Large Ethane Carriers (VLECs)
A Very Large Ethane Carrier, or VLEC, is a ship with about 80,000m³ or more cargo capacity and is designed especially to carry liquefied ethane at the temperature of around minus 92 degrees Celsius. Ethane, the second largest natural gas constituent after methane, constitutes 5%-20% of natural gas, varying depending on the natural gas field. It is one of the important raw materials to refine ethylene, which is a basic chemical with minimal greenhouse gas emissions.
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Source: MOL
