EPS secures 15-year TC from STL for four dual fuel VLECs
23 October 2020
EPS enters new sub-segment while remaining focused on sustainability
Eastern Pacific Shipping (EPS) has won a bid to purchase, build, and operate four 98,000 cubic meter VLECs for China-based Zhejiang Satellite Petrochemical (STL). The vessels will be carrying ethane from the US Gulf Coast to Shenzhen-listed STL’s plant in Lianyungang, China. All four VLECs will feature dual fuel ethane propulsion which will reduce greenhouse gas emissions when compared to conventional marine fuels.
EPS CEO Cyril Ducau said, “We are extremely pleased to partner with STL and enter the ethane carrier segment. Both companies share a vision of being the green and technology-driven leaders in our respective industries. This made the negotiations and subsequent agreement an enjoyable and seamless process. For EPS, the addition of these four vessels complement our existing, and growing, mid and large gas carrier fleet. This deal also serves as an example of our commitment to using alternative marine fuels as transitional fuels towards decarbonisation and the preservation of the environment for future generations. This 15-year charter is a major milestone for us that will strengthen our foundation as we grow and diversify our fleet.”
The VLECs will be built at South Korea’s Hyundai Heavy Industries and Samsung Heavy Industries and are scheduled for delivery in the first half of 2022.
Eastern Pacific Shipping’s team signs the VLEC novation and charter contract. Top from left: Eastern Pacific chief operating officer Capt. Anil Singh; assistant manager Joanna Zhou; commercial director Knut Estensen; chief executive Cyril Ducau; commercial director for tankers and sale and purchase Gak Yong Tay; and sale-and-purchase manager Dan Kwek. Bottom left: STL, HHI, SHI. Bottom right: Idan Ofer.