Norway’s Ocean Yield has cancelled one of three liquefied ethylene gas carriers under construction at China’s Sinopacific Offshore & Engineering.
The move by Ocean Yield was forced due to Sinopacific’s filing for receivership earlier this year after a failed acquisition by CIMC Enric. Construction of the other two vessels will go ahead, with the first due for delivery by Sinopacific at the end of this month and the second, financed by Sumec Marine, will have a delayed delivery in July 2017.
Ocean Yield will receive a refund of its pre-delivery instalments for the third vessel, secured by a bank guarantee, to the tune of $16.2m plus interest.
Ocean Yield had ordered the three 36,000 cbm vessels for bareboat charters with Germany’s Hartmann Group for 10-year sub-charters to SABIC Petrochemicals.