Japanese shipowner Mitsui OSK Lines is being named as the shipowner behind a $500m order for three very large ethane carriers (VLECs) that has been announced by South Korea’s HD Korea Shipbuilding & Offshore Engineering Co (HD KSOE).
The yard group holding company said it had won an order to build three 98,000-cbm vessels at its HD Hyundai Heavy Industries yard in Ulsan, pricing the ships at around $167m each.
The VLECs are due for delivery in the first half of 2027.
HD KSOE did not name the contracting party behind the order but referred to them as “an Oceanian shipper”.
Those following the newbuilding business said MOL has ordered the VLECs and indicated that the ships are backed by time-charter contracts with India’s Reliance Industries.
MOL and Reliance have been contacted by TradeWinds for confirmation and comment.
The shipowner and Indian multinational have a long relationship of working together that goes back more than 10 years.
In December 2014, MOL inked a deal with Reliance to supervise the construction of six VLECs contracted by the Indian company. The Japanese owner also signed up to own and manage the vessels on delivery.
The sextet were ordered at Samsung Heavy Industries at a reported price of $120.6m each and delivered from late 2016.
These were among the first VLECs ordered at the time and signalled the birth of a new vessel type. They were designed to ship ethane from the US to supply Reliance’s cracker at its Jamnagar refinery in Gujarat.
This year has seen a mini-surge in VLEC orders.
Brokers cited Ineos’ drive for the tonnage as one of the backers for the orders.
In November, UK shipowner Purus Marine signed up for a pair of VLEC newbuildings at HD Hyundai Heavy Industries for $170m each and 2027 delivery dates. The duo are understood to be chartered to Ineos on long-term deals.
HD Korea Shipbuilding & Offshore Engineering, the shipyard holding arm of HD Hyundai Group, said it had won a $340m contract from an “Asian shipper” to build two VLECs.
This month, China’s Pacific Gas booked three more VLECs at Jiangnan Shipyard — at least four of which are for Ineos — bringing the shipbuilders on-order tally of the large ethane carriers to 14 ships.
Clarksons’ Shipping Intelligence Network lists 37 VLECs in the existing orderbook for delivery dates from 2024 to 2027, the bulk of which are of around the 99,000-cbm size.
