Chinese petrochemical player Oriental Energy has announced a decision to transfer all 12 chartered VLGCs to a shipping unit of its parent group as the company has decided to quit the LPG trade.
Oriental Energy has entered into an agreement with Singapore-based Keegan Shipping, a unit controlled by its parent Oriental Petroleum, for the commercial operations of the 12 ships. According to the company, Keegan Shipping is currently in negotiations with a shipowner to establish a VLGC pool.
Oriental Energy said the move is in line with the company’s strategy to quit the LPG trade and transform its business to green chemical and hydrogen energy.
In January, Oriental Energy entered into shipbuilding contracts with Jiangnan Shipyard for the construction of two 93,000 cu m VLGCs, which will also be transferred to Keegan Shipping.