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MISC moves into VLEC sector through deal with Satellite Petrochemical

Malaysian national shipping group MISC has entered into memorandum of agreements with China’s Zhejiang Satellite Petrochemical for the acquisition of six newbuild 98,000 cu m very large ethane carriers (VLECs).

The six VLECs, currently under construction at South Korean yards Hyundai Heavy and Samsung Heavy, were originally ordered by Delos Shipping with charters fixed to Satellite Petrochemical who later took over the ownership of the six ships.

Last month, Satellite Petrochemical announced plans to sell the six vessels with charter deals.

According to MISC, the company acquired the six vessels for a total price of $726m and signed time charter contracts with Satellite Petrochemical for the vessels for a period of 15 years, commencing from the fourth quarter of this year.

Splash understands that Satellite Petrochemical is currently in talks with Korean yards for more VLECs in order to meet its ethane transportation demands from its new plant in Lianyungang.

The deal also marks MISC’s entry into the VLEC sector.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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