MOL confirms VLEC newbuilds backed by Thai charter
The newly ordered very large ethane carriers have a capacity of 100,000 cu m and are booked for delivery during 2027
New tonnage was recently ordered from South Korea’s Samsung Heavy Industries for long-term charter to SCG Chemicals, a subsidiary of Thailand’s Siam Cement Group
MITSUI OSK Lines confirmed it has ordered three very large ethane carriers from South Korean shipbuilder Samsung Heavy Industries.
The 100,000 cu m newbuildings are among the largest VLECs to be ordered to date and are backed by a long-term charter to SCG Chemicals, a wholly owned subsidiary of Thailand’s Siam Cement Group.
The newbuilding contract, valued at a total of Won742bn ($501m), was first announced by Samsung in late December however the identity of the shipowner was not disclosed at the time.
All three, dual-fuel, ships are contracted to be delivered during 2027.
With its latest newbuilding order, the fleet of VLECs over 80,000 cu m managed and operated by the Japanese shipowning group will reach 12 vessels.
VLECs are a derivative of the fully refrigerated liquefied petroleum gas carrier and can carry LPG, ethane and ethylene.
There are understood to be a combined 90 VLECs in service and on order. MOL was the first shipowner to put a VLEC into service.
“Since becoming the first company in the world to enter the VLEC business in 2014, MOL group has steadily built up a solid track record in liquefied ethane transport,” said MOL.
“To meet the expected increase in demand for ethane transportation, we will continue to expand our VLEC business,” added MOL.
The newbuildings are expected to be deployed in shipping liquefied ethane from SCGC’s Vietnam subsidiary, Long Son Petrochemicals.
