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Ocean Yield ventures into gas market with LEG newbuildings

Norway’s Ocean Yield has ventured into the gas market with an acquisition for three liquefied ethylene gas (LEG) carriers, and it also bought two pure car truck carriers (PCTC), putting in an investment of $333m in total.

Lee Hong Liang, Asia Correspondent

May 9, 2014

1 Min Read
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Oslo-listed Ocean Yield has entered into contracts to build three new 36,000 cu m LEG carriers at China’s Sinopacific Offshore & Engineering (SOE) at a cost of $243m.

The gas carriers are scheduled for delivery in August, October and December 2016 respectively, and will subsequently be on a 15-year bareboat charter to Germany’s Hartmann Group.

Hartmann will have the opportunity to buy into one-third ownership of the gas carriers at the end of year 10 at depreciated value, or receive one-third profit share from year 11 to year 15, according to Ocean Yield.

Lars Solbakken, ceo of Ocean Yield, said: “We are pleased to announce this transaction as it marks Ocean Yield’s entry into the gas segment.”

Separately, the company has also agreed to buy two PCTC of 4,900-car capacity for $90m on the back of eight-year bareboat charters to Höegh Autoliners. Höegh will have certain options to acquire the vessels during the bareboat charter period, with the first option after five years.

The PCTC were built in 2010 and will be delivered to Ocean Yield within the second quarter of this year.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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