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Zhejiang Satellite Petrochemical seeks buyer for six VLEC newbuilds

Chinese company Zhejiang Satellite Petrochemical has announced a plan to sell six 98,000 VLECs and charter them back for shipping operations between China and the US.

According to Satellite Petrochemical, the company entered into an agreement in 2017 to set up a raw material export facility in the US for its petrochemical project in Lianyungang. The company entered into a charter agreement in 2018 with Delos Energy Transportation for six VLEC newbuildings under construction at two South Korean yards, Hyundai Heavy and Samsung Heavy.

Satellite Petrochemical later cancelled the charter contract with Delos, claiming Delos failed to make payment according to the newbuild contract and the company took over the ownership of the six ships to ensure their timely delivery.

Now Satellite Petrochemical is looking for new owners to take over the ownership of the vessels and charter them back to the company. 

The total price for the six vessels is $717.28m, and all six are set for delivery this year.

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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