On March 18, Samsung Heavy Industries announced that it has signed a contract with an Asian shipowner for the construction of two very large ethane carriers (VLECs), with an order value of about $320 million (466.1 billion won) and a single-vessel cost of about $160 million (233.05 billion won), which are expected to be delivered by the end of February 2028 one after another.
Ethane carriers are high value-added vessels used to transport ethane in a liquefied state at minus 89 degrees Celsius extracted from natural gas such as shale gas.In July 2014, Samsung Heavy Industries received the world’s first order for an 88,000m3 VLECs.
Together with the latest order, Samsung Heavy Industries has received orders for 12 new vessels worth $1.9 billion so far this year, achieving 19 percent of its annual order target of $9.8 billion. By vessel type, these include one liquefied natural gas (LNG) carrier, two VLECs and nine shuttle tankers.
According to a news release from Mitsui O.S.K. Lines, Ltd. (MOL) announced on the same day, that its group Company MOL Energia Pte. Ltd., signed long-term charter contracts with SCG Chemicals (SCGC), a wholly owned subsidiary of the Siam Cement Group (SCG), a leading integrated chemical player in ASEAN, for two very large ethane carriers (VLECs), in addition to three vessels already contracted on January 24.
Of the approximately 90 dedicated liquefied ethane carriers currently in service or on order worldwide, this deal will bring the number of VLECs managed and operated by the MOL Group to 14.The vessels are equipped with ethane dual-fuel propulsion engines, which reduce emissions of greenhouse gases, sulfur oxides, and nitrogen oxides compared to vessels that run on conventional fuel oil.
With the conclusion of this contract, the MOL Group will own a total of five newly built dedicated liquefied ethane carriers serving SCGC, and the group will be responsible for transporting all of the ethane used at SCGC’s petrochemical plants in Vietnam. Through the safe operation of these VLECs, the MOL Group will help strengthen the competitiveness of Vietnam’s petrochemical industry and boost regional economic growth.
The group will continue to provide safe, reliable ocean shipping services by leveraging its advanced safe operation management system developed over decades of experience in the transport of liquefied gases, including LNG, to meet the demand for ethane transport, which is expected to keep expanding. In addition, as a global social infrastructure group, the MOL Group will leverage its overseas network to accumulate long-term stable profits as stated in its group management plan BLUE ACTION 2035 and achieve business development and expansion in line with its regional strategies.