First VLEC joins MISC fleet

MISC Berhad, a Malaysia-based provider of energy-related maritime solutions and services, has taken delivery of its first very large ethane carrier (VLEC) at the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea.

Seri Everest is the first in a series of six VLECs that MISC purchased in July 2020 and made entry into the global ethane market.

Concurrently, MISC had also entered into time charter parties (TCPs) with Zhejiang Satellite Petrochemical Co. Ltd. (STL), for the six VLECs to operate in international waters.

“We are proud to welcome Seri Everest, our first VLEC into MISC’s existing fleet. With this first delivery, our VLEC has set a new benchmark in the ethane market,” Yee Yang Chien, President and Group Chief Executive Officer of MISC, commented.

“Seri Everest has the capacity of transporting large scale ethane over long distance while ensuring the highest level of safety and reliability. We hope to continue to capitalise on this opportunity as we are confident that we will gain a strong foothold to cater to the increasing demand in this niche segment.”

Seri Everest will be chartered to STL for a firm period of 15 years and managed by Eaglestar Shipmanagement Gas (S) Pte. Ltd.

As the second generation VLECs, Seri Everest and the other five VLECs are the largest vessels of its kind in the world. The VLECs serve as a more economical and viable solution for large-scale ethane transportation with more than 98,000 cbm of total cargo capacity.

Korean shipyards SHI and Hyundai Heavy Industries (HHI) are constructing the remaining five VLECs scheduled to be delivered in the first half of 2021.

As of 30 June 2020, MISC Group’s fleet consisted of more than 100 owned and in-chartered vessels comprising of liquefied natural gas (LNG), petroleum and product vessels, 14 floating production systems (FPS) as well as two LNG floating storage units (FSU).