MISC eyes bigger share in ethane shipping business with new niche very large carrier

KUALA LUMPUR (Bernama) — MISC Bhd hopes to capitalise on its new very large ethane carrier (VLEC), Seri Everest, and set a new benchmark in the ethane market, said president and group chief executive officer Yee Yang Chien.

He said the carrier, which will join the shipping company’s existing fleet, was delivered according to schedule amid the disruption caused by the global COVID-19 pandemic.

“Seri Everest has the capacity of transporting large scale ethane over long distance while ensuring the highest level of safety and reliability.

“We hope to continue to capitalise on this opportunity as we are confident that we will gain a strong foothold to cater to the increasing demand in this niche segment,” he said in a statement.

MISC has taken delivery of the VLEC at the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea. Seri Everest is the first from a series of six VLECs that MISC purchased in July 2020.

Concurrently, MISC has also entered into Time Charter Parties (TCPs) with Zhejiang Satellite Petrochemical Co. Ltd. (STL), for the six VLECs to operate in international waters.

“Seri Everest will be chartered to STL for a firm period of 15 years and managed by Eaglestar Shipmanagement Gas (S) Pte. Ltd.

“As the second generation VLEC, Seri Everest and the other five VLECs are the largest vessels of its kind in the world,” Yee said.

The VLECs serve as a more economical and viable solution for large-scale ethane transportation with more than 98,000 cubic metres of total cargo capacity.

Both shipyards in Korea, SHI and Hyundai Heavy Industries Co., Ltd., are constructing the rest of the five VLECs scheduled to be delivered in the first half of 2021.