Mitsui OSK Lines (MOL) group company MOL Energia of Singapore has signed a long-term charter contract for three newbuilding very large ethane carriers (VLECs) with SCG Chemicals of Thailand, a wholly owned subsidiary of Thailand’s Siam Cement Group (SCG).
The 100,000 m3 VLECs are to be built at Samsung Heavy Industries (SHI) in South Korea and are scheduled for delivery in 2027. The vessels will be equipped with dual-fuel ethane propulsion engines, which will reduce GHG, SOx and NOx emissions compared to conventional heavy fuel oil vessels.
With this contract, the number of VLECs managed and operated by the MOL group will increase to 12 vessels out of a total of about 90 VLECs which have been delivered or in order.
Since becoming the first company to enter the VLEC business in 2014 MOL group has steadily built up a track record in liquefied ethane transport and a reputation in VLEC management and operation, gaining a high level of trust from customers. SCGC, meanwhile has decided to import ethane to enhance its competitiveness through lower feedstock cost and flexibility for Long Son Petrochemicals LSP, which is one of the largest petrochemical plants of SCGC while also lowering carbon emissions. In securing the ethane transport vessels, SCGC recognised MOL group’s performance in the VLEC business, and has selected MOL group as a VLEC service provider, leading to the long-term charter contract. MOL group expects to strengthen SCGC’s competitiveness in the petrochemical industry in Vietnam, and contribute to the growth of regional economies, by taking on the responsibility of transporting liquefied ethane for SCGC.
To meet the expected increase in demand for ethane transportation, MOL intends to continue to expand its VLEC business.
Image: Rendering of MOL’s VLEC vessel for SCG (Credit: Samsung Heavy Industries)
