Jiangnan Shipyard has set a milestone in shipbuilding history by delivering the world's first IMO type-B tank very large ethane carrier (VLEC).
The Chinese shipyard has delivered the 99,000-cbm ethane carrier, named Pacific Ineos Belstaff, to Pacific Gas, the gas carrier arm of Shandong Shipping.
The Pacific Ineos Belstaff is one of a pair of VLECs that were originally ordered by Pacific Gas at the end of 2019 on the back of a long-term charter contract with chemical giant Ineos.
They were reported to cost $120m each.
Hu Keyi, Jiangnan's chief of corporate technology, told TradeWinds that the shipyard started construction of the VLEC under supervision of ABS in 2020.
"We received great support from the shipowner's site team, class surveyors and sub-contractors," Hu said. "We mitigated the impacts from the coronavirus pandemic and kept to the ship's delivery schedule."
The dual-fuelled ethane carrier is fitted with two in-house yard-designed "BrillanceE" type-B cargo tanks.
The VLEC is compliant with IMO Tier III NOx regulations and meets the latest version of the 2016 International Code of the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk — also referred to as the IGC Code.
"Jiangnan's BrillanceE type-B tank has robust and safer features in terms of cargo compatibility and flexibility," Hu said. "No impact of sloshing and easy maintenance ... We have also optimised the ship's hull with Jiangnan's patented VS-Bow and its performance was proven during the sea trial.
"With ethane as fuel, the ship's carbon footprint will further be reduced."
Hu said the 12-metre draught, 99,000-cbm VLEC was specially designed for long-haul transportation of ethane and the ship will be able to navigate the Houston Ship Channel in Texas.
The vessel is also capable of carrying other liquefied gas cargoes such as ethylene, LPG and gases that require chilling down to -104C.
Leasing structure
With the adoption of an asset light strategy, Pacific Gas novated the VLECs to Chinese leasing companies China's Bank of Communications Financial Leasing (Bocomm) and SPDB Financial Leasing.
It then chartered back the vessels under a long-term agreement.
Bocomm is the owner of the Pacific Ineos Belstaff, while SPDB will own the second VLEC — to be named Pacific Ineos Grenadier — which is slated for delivery in March 2022.
Ineos has chartered the two VLECs to move US ethane to its new petrochemical plant in the Belgian port of Antwerp, where it has invested $3.42bn in an ethane gas cracker and propane dehydrogenation unit.
Jiangnan is the second shipyard in China to have built a VLEC. Dalian Shipbuilding Industry Offshore — a subsidiary of Dalian Shipbuilding Industry Co (DSIC) — was the first when it constructed two 85,000-cbm vessels for JHW Engineering & Contracting (JHW E&C).
The JS Ineos Marlin (built 2019) and JS Ineos Dolphin (built 2020) were fitted with IMO type-C tank and are employed by Ineos.
Gas shipping sources indicate that with the delivery of the Pacific Ineos Belstaff, there will be a total of 15 VLECs on the water.
Around 10 VLEC newbuildings are under construction at shipyards in South Korea and China.
