Idan Ofer’s Eastern Pacific Shipping has diversified into the very large ethane carrier (VLEC) sector by taking over the ownership of four newbuildings.
The Singapore shipowner has signed up to own 98,000-cbm vessels ordered by China's Zhejiang Satellite Petrochemical (STL).
As part of the deal, Eastern Pacific is believed to have also secured a $1bn charter contract from acrylics producer STL.
The company, which is led by chief executive Cyril Ducau, said it has won a bid to purchase, build and operate the four VLECs for STL. The VLECs will carry ethane from the US Gulf Coast to STL’s plant in the Chinese city of Lianyungang.
Eastern Pacific said the VLEC newbuildings, which will be built at Hyundai Heavy Industries and Samsung Heavy Industries, will feature dual-fuel propulsion, allowing the ships to run on ethane or conventional fuels. That is expected to significantly reduce greenhouse gas emissions when compared to conventional marine fuels.
“We are extremely pleased to partner with STL and enter the ethane carrier segment,” Ducau said. “Both companies share a vision of being the green and technology-driven leaders in our respective industries. This made the negotiations and subsequent agreement an enjoyable and seamless process.”
He said the ships will complement its growing fleet of LPG carriers.
“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,” Ducau said.
Eastern Pacific said it has entered into 15-year time charterparties with STL for the four VLEC newbuildings. The company did not disclose the charter rates but gas players said the deal is worth $1bn.
“This 15-year charter is a major milestone for us that will strengthen our foundation as we grow and diversify our fleet,” Ducau said.
HHI and SHI will build two vessels each. The shipyards are scheduled to deliver the VLEC newbuildings in the first half of 2022.
STL ordered the gas carriers in August and the newbuildings were reported to cost around $146m each.
Eastern Pacific, which is a tonnage provider, owns a diverse fleet of containerships, gas carriers, bulkers, oil tankers and car carriers, with an aggregate capacity of 15m dwt.
