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Zhejiang Satellite adds another six VLECs

Zhejiang Satellite Petrochemical has fixed an additional six 98,000 cu m VLECs through newbuild orders and charters in order to meet its growing ethane transportation demands from its new plant in Lianyungang, confirming a report by Splash last month.

Satellite Petrochemical ordered two VLECs each at Hyundai Heavy Industries and Samsung Heavy Industries, with deliveries scheduled in 2022. The total price of the four vessels is $441m, and the company is looking for buyers to take over the ownership of the vessels as part of a sale and leaseback arrangement.

Additionally, the company has chartered another two VLECs from Tianjin Southwest Maritime for a period of 15 years with a total charter cost of $500m.

Satellite Petrochemical currently has six 98,000 cu m VLECs under construction at Hyundai Heavy and Samsung Heavy, and last month the company sold the ownership of the six vessels to Malaysia’s MISC and chartered them back for a period of 15 years.

Satellite Petrochemical is the largest acrylic acid producer in China, and all of the VLECs will be used to transport raw materials from Texas to Lianyungang. The phase one project of the company’s new petrochemical plant will commence operations later this year and the second phase is scheduled to start production in the middle of 2022.

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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