Zhejiang Satellite receives another six VLECs
Zhejiang Satellite Petrochemical has built six additional VLECs of 98,000 cubic metres, through newbuild orders and charters, to meet its growing demands for ethane transport
At Hyundai Heavy Industries and Samsung Heavy Industries Satellite Petrochemical ordered two VLECs each, with deliveries scheduled for 2022. The total price of the four vessels is $441 m, and as part of a sale and leaseback arrangement, the company is looking for buyers to take over ownership of the vessels.
The company also chartered a further two VLECs from Tianjin Southwest Maritime for a 15-year period with a gross charter cost of $500 m.
Satellite Petrochemical currently has six 98,000 cubic meters of VLECs under construction at Hyundai Heavy and Samsung Heavy, and last month the company sold to Malaysia's MISC ownership of the 6 vessels and chartered them back for 15 years.
Satellite Petrochemical is China's largest manufacturer of acrylic acid and all of the VLECs will be used to bring raw materials from Texas to Lianyungang. Phase one of the company's latest petrochemical plant project will begin operations later this year and the second phase is expected to begin production by mid-2022.
Maritime Business World