MOL Group signs long-term charter for 3 very large liquified ethane carriers

Mitsui O.S.K. Lines announced that on January 23, its group company MOL Energia signed a long-term charter contract for three newbuilding very large ethane carriers with SCG Chemicals PLC a wholly owned subsidiary of Thailand’s Siam Cement Group. The 100,000 m3 VLECs will be built at Samsung Heavy Industries and are scheduled for delivery in 2027. The vessels will be equipped with dual-fuel ethane propulsion engines, which will reduce greenhouse gas, sulfur oxide, and nitrogen oxide emissions compared to conventional heavy fuel oil vessels.

With this contract, the number of VLECs managed and operated by our group will increase to 12 vessels out of approximately 90 VLECs which have been delivered or in order.

Since becoming the first company in the world to enter the VLEC business in 2014(Note 2), MOL group has steadily built up a solid track record in liquefied ethane transport and a reputation as a leading company in VLEC management and operation, gaining a high level of trust from customers. SCGC, meanwhile has decided to import ethane to enhance its competitiveness through lower feedstock cost and flexibility for Long Son Petrochemicals Co. Ltd. (LSP), which is one of the largest and most state-of-the-art petrochemical plants of SCGC while also lowering carbon emissions. In securing the ethane transport vessels, SCGC recognized MOL group’s performance in the VLEC business, and has selected MOL group as a VLEC service provider, leading up to the long-term charter contract. MOL group expects to strengthen SCGC’s competitiveness in the petrochemical industry in Vietnam, and contribute to the growth of regional economies, by taking on the responsibility of transporting liquefied ethane for SCGC.

To meet the expected increase in demand for ethane transportation, we will continue to expand our VLEC business. We will provide safe and reliable maritime transportation services utilizing our advanced safety management system, which has been cultivated through LNG transportation and other liquefied gas operations. By doing so, we will contribute to the development of the regional economy and achieve the accumulation of long-term stable profits as outlined in our group management plan “BLUE ACTION 2035.”