Mitsui O.S.K. Lines, Ltd. (MOL), under the leadership of President & CEO Takeshi Hashimoto, has announced that its subsidiary, MOL Energia Pte. Ltd., signed a long-term charter contract on January 23 for three new very large ethane carriers (VLECs) with SCG Chemicals PLC., a subsidiary of Thailand’s Siam Cement Group Co. (SCG).
These 100,000 m³ VLECs are to be constructed by Samsung Heavy Industries Co., Ltd. and are expected to be delivered in 2027. Equipped with dual-fuel ethane propulsion engines, these vessels will significantly reduce greenhouse gas, sulfur oxide, and nitrogen oxide emissions compared to traditional heavy-fuel oil ships.
This agreement will increase the number of VLECs managed and operated by MOL Group to 12, out of approximately 90 VLECs worldwide. MOL was the pioneer in the VLEC industry, entering the market in 2014, and has since built a strong reputation in liquefied ethane transport. The MOL Group is recognized as a leader in VLEC management and operations, earning high levels of trust from its clients.
SCGC has opted to import ethane to improve its competitive advantage by reducing feedstock costs and providing flexibility for Long Son Petrochemical Co., Ltd. (LSP), one of its most advanced petrochemical plants, all while reducing carbon emissions. SCGC acknowledged MOL Group’s exemplary performance in the VLEC business and chose MOL as their VLEC service provider, leading to this long-term charter contract.
Through this partnership, MOL Group aims to enhance SCGC’s competitiveness in Vietnam’s petrochemical industry and contribute to regional economic growth by ensuring the reliable transport of liquefied ethane.
MOL Group plans to continue the expansion of its VLEC business to meet the growing demand for ethane transportation. The company is committed to providing safe and dependable maritime transportation services, leveraging its advanced safety management system, which has been honed through LNG and other liquefied gas operations.
This strategic move aligns with MOL’s group management plan, “BLUE ACTION 2035,” and aims at accumulating long-term stable profits while fostering regional economic development.
