Austrian chemical company Borealis has chartered one 91,000-cbm dual-fuelled VLGC newbuilding from Japanese owner Iino Kaiun.
Borealis did not disclose the rate or charter period but a gas expert said it had fixed the vessel for between five and seven years.
TradeWinds reported last month that Iino was expected to confirm the VLGC newbuilding, which can run on LPG or conventional fuels, at Daewoo Shipbuilding & Marine Engineering.
The South Korean shipyard is scheduled to deliver the gas carrier in the first quarter of 2023.
The contract is understood to include an option for an additional ship.
Lower emissions
Shipbuilding players said the newbuilding will cost Iino close to $80m, as it will be fitted with DSME’s shaft generator motor system.
According to Borealis, the system enables the generation of electricity from the LPG dual-fuel engine during navigation and contributes to lower fuel/lubricant oil consumption and lower emissions.
“This innovative shipping solution will support Borealis' future sourcing of feedstock for their world-scale propane dehydrogenation plant in Kallo, Belgium, currently under construction,” the company said.
“Borealis looks forward to the partnership with Iino to develop and operate a safe, environmentally friendly and reliable VLGC shipping solution, based on the latest technology.”
Vienna-headquartered Borealis is a provider of advanced and circular polyolefin solutions and a producer of base chemicals and fertilisers. It is also engaged in the mechanical recycling of plastics.
The outfit has 6,900 employees and operates in more than 120 countries.
In addition to the VLGC newbuilding at DSME, Iino also has one dual-fuel 84,000-cbm newbuilding under construction at Kawasaki Heavy Industries for delivery in the fourth quarter of this year.
It has ordered the VLGC against a tender contract from Norwegian energy company Equinor.
Iino has set the target of reducing its greenhouse gas emissions per transport unit in its operating ships by 40% by 2030, compared with levels in 2008.
