Eastern Pacific Shipping has extended its massive orderbook for the new breed of ultra-large ethane carriers by inking two newbuildings against long-term charters.
The Singapore-based company has penned two 150,000-cbm vessels at South Korea’s HD Hyundai Samho to be delivered in 2027.
Chief executive Cyril Ducau confirmed the newbuildings and long-term charters but declined to name the charterer.
Industry sources said China’s Satellite Chemical has employed both ULECs for at least 15 years.
This is the second ULEC contract Eastern Pacific has signed in the past two months
In August, the diversified shipowning company commissioned Jiangnan Shipyard in China to build six similar-size vessels to be delivered in 2027.
It was reported to be paying more than $200m each for the Jiangnan newbuildings and has ordered the series of ethane carriers against long-term charter contracts from Shenzhen-listed Satellite Chemical.
On 28 August, in a regulatory announcement, Satellite Chemical disclosed it had chartered six ULECs from Eastern Pacific for 15 years.
The company did not reveal the rates but said it needed the vessels to transport ethane to its new plant in Lianyungang.
The price for the two ULECs at HD Samho has not yet been disclosed. But brokers believe they will cost slightly more than Jiangnan’s vessels.
HD Samho and Jiangnan’s ULEC newbuildings will be fitted with GTT Mark III membrane tanks.
The new ship design will provide 50% more capacity than the world’s largest existing very large ethane carriers and will feature a versatile cargo containment system capable of transporting ethane, ethylene, LPG and LNG.
Strengthening relationship
Satellite Chemical is an existing client of Eastern Pacific. The company has worked with the shipowner on six VLECs — four built by Samsung Heavy Industries and two by HD Hyundai Heavy Industries.
The ethane buyer is expanding its capacity and is reportedly transitioning to ULECs to transport the volumes secured from the US.
Satellite Chemical has two ethane crackers in operation, one under construction and is planning a fourth, all in the same area. The crackers will be fully operational by 2027.
