Oriental Energy inks VLGC charters with Shandong Shipping

The charter contract will be over a period of 10 years with charter rates not exceeding $60m a year for the four ships, according to China's Oriental Energy, owner of Oriental Energy (Singapore).

The newbuildings are scheduled to be delivered before the end of 2016, Shenzhen-listed Oriental Energy announced late on Thursday. The shipbuilder and newbuilding prices were not disclosed.

Oriental Energy said it has signed a long term deal to procure propane from North America, and is seeking to lock in new supply deals from other international markets. The supplies are needed to meet increasing demand from the company's propane dehydrogenation and polypropylene projects in China's Zhangjiagang and Ningbo.

Oriental Energy added that by committing to an appropriate number of long term vessel charter contracts, the company would be able to significantly enhance its ability to control transportation costs and raise its competitiveness.