South Korean shipowner H-Line Shipping ordered the LNG carrier it contracted this month on the back of a long-term charter to Vitol.
Brokers said the 174,000-cbm newbuilding with XDF propulsion had been fixed for 10 years, at a rate in the low $60,000-per-day range.
Vitol and H-Line confirmed the deal on Wednesday.
Vitol said it also holds "extension options and the ability to exercise additional LNG carriers to support its further growth in the LNG industry through this partnership with H-line."
More to come?
Pablo Galante Escobar, Vitol’s head of LNG, said: “We are very excited to have concluded this contract with H-Line, a top class Korean shipowner, which represents Vitol’s second long-term charter of a modern 174,000-cbm LNG carrier.
"This allows us to optimise our LNG portfolio that includes increasing FOB volumes from different areas that we are actively marketing to our global clients.”
Last week, H-Line, which is controlled by private equity outfit Hahn & Co, was named as the company behind a KRW 228bn ($191m) order at Hyundai Samho Heavy Industries. The vessel is due for delivery in December 2021.
Brokers spoke of how Hahn & Co had been seen in the market tendering for broking services to help it conclude the business.
Myung Deuk Seo, CEO of H-Line, added: “We are very pleased and take pride in signing a long-term LNG transportation contract with a top tier global energy and commodities company like Vitol.
"We will put our best efforts in every stage from shipbuilding to shipping operations under our contract with Vitol. We will also make full use of our capabilities for successful contract execution based on the company’s fundamental principles, 'safety-first' and 'eco-friendly' policies.”
In April, Vitol said it had chartered a 174,000-cbm newbuilding ordered speculatively by TMS Cardiff Gas at Hyundai Heavy Industries. The vessel, which delivers in 2020, has been chartered for 10 years.
H-Line controls four LNG carriers built between 1995 and 2000. It has already made the break into LNG fuelling, signing up with South Korean steel maker Posco to build four 180,000-dwt bulkers to lift cargoes from Australia.
Hahn & Co has been considering options to divest all or part of its stake in H-Line.
