MISC inks purchase agreements, time charters for six VLEC newbuildings

Malaysian shipping company MISC has entered into agreements with six indirect wholly owned subsidiaries of China’s Zhejiang Satellite Petrochemical (STL) for the purchase of six newbuild 98,000-cubic-metre very large ethane carriers (VLECs).

Concurrently, MISC, through its vessel-owning entity Portovenere and Lerici Singapore (PLS), has entered into time charter parties with STL for the six VLECs for operations in international waters.

The VLECs will be purchased by MISC for approximately US$726 million and chartered to STL through PLS for a firm period of 15 years. The charters are expected to commence in the fourth quarter of 2020.

South Korean shipbuilders Samsung Heavy Industries and Hyundai Heavy Industries are constructing three VLECs each.