Oriental Energy signs long term charter deal with Shandong Shipping

Shanghai: Oriental Energy has announced that its fully owned subsidiary Oriental Energy (Singapore) has signed long term vessel charter deals with Pacific Gas Pte, a fully owned subsidiary of Shandong Shipping, for four 50,000dwt newbuild LPG vessels.

The vessels are expected to be delivered before the end of 2016 and the chartering period will be for ten years from delivery. Annual chartering fee for the four vessels is around $60m.

Oriental Energy said the company has signed a long term propane supply deal in North America, and the company has also been looking for new supply deals to meet the company’s increasing demand from its ongoing chemical projects in Zhangjiagang and Ningbo.

Oriental Energy is currently working on the set up of a professional ship management team to manage the four vessels and will develop a larger ocean transport platform in future.

According to the agreement, Shandong Shipping will order the four vessels soon, however, the shipbuilder hasn't been revealed yet. [04/04/14]

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