Zhejiang Satellite Petrochemical takes over orders for six VLECs at HHI and SHI

Zhejiang Satellite Petrochemical ordered six VLECs at Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI).

China’s largest acrylic acid and acrylates manufacturers, Zhejiang Satellite Petrochemical, ordered six 93,000 cu m very large ethane carriers (VLEC) is entering into the shipowning sector with the takeover of the contracts from Delos Shipping at HHI and SHI.

The company booked three VLECs at each of the two Korean yards, totalling in the price of RMB5bn ($734.8m). The vessels are the world’s largest ethane carriers.

The company initially planned to co-operate with US marine shipping industry investment firm Delos Shipping for the long-term chartering of three plus three VLECs. Last year, Delos Shipping ordered six VLECs at the two Korean yards, however, the contracts were cancelled as Delos Shipping was unable to complete payments.

The two Korean yards re-signed the contracts with Zhejiang Satellite Petrochemical for the construction of the six VLECs.

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Last year, Zhejiang Satellite Petrochemical signed "Ethane Supply Agreement" and "Ethyl Transport MOU" with American Energy Transportation Company and the British Voyager Gas Transportation Company. It will import about 3m tons of ethane per year, with a total trade volume of nearly RMB100bn.

The company is also investing in a hydrocarbon project at Lianyungang which is scheduled for putting into operation in 2020.

Posted 11 March 2019

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Katherine Si

China Correspondent

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