Chemical giant Ineos has confirmed its long-flagged up charter deal on two LNG carrier newbuildings contracted by Japanese shipowner Mitsui OSK Lines.
The company said today that Ineos Energy Trading has chartered two 174,000-cbm LNG carriers which are on order at Hanwha Ocean’s Okpo Shipyard in South Korea without giving details of the delivery dates on the vessels or the hire periods.
TradeWinds tipped MOL as having been selected for this business in February after the company ran a tender for the vessels in October 2022 requesting vessels for delivery in the second half of 2026.
At the time brokers said charters on the ships are for periods of between 10 and 12 years with rates quoted in the high-$80,000-per-day range, with the second in the mid-$90,000-per-day range.
The two newbuildings are being fitted with ME-GA propulsion systems, air lubrication systems and shaft generators to give them high efficiencies.
MOL said the vessels are due for delivery in 2027.
Ineos, which already operates a fleet of 12 ethane carriers and also operates naphtha vessels, said the newbuildings mark its “first entry into the LNG market”.
They will be used to import LNG from the US into Germany, the company said.
Ineos described the charter deals as “a significant milestone” for its trading arm after its signing of a 1.4 million tonnes per annum long-term sales and purchase agreement with US producer Sempra. This will see LNG shipped out of Sempra’s Port Arthur facility into the long-term regasification capacity Ineos has bought in the German LNG terminal in Brunsbuttel.
The company said it will capitalise on its experience as the largest transporter of ethane gas from the US to Europe and Asia, to develop a ‘pipeline’ of LNG into Europe to service its own demand and that of third parties.
Ineos Energy Trading chief executive David Bucknall said: “It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design.
“We agreed an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip,” Bucknall said. “We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future.”
The CEO added that Ineos is looking forward to developing the relationship with MOL “both during the charter period and beyond.”
