SHI delivers ‘largest ever’ VLEC

Seri Everest, at 98,000 m³ the largest VLEC ever built, is the first of a phase-one order of six vessels by Chinese private sector producer Zhejiang Satellite Petrochemical (STL).

In July 2020 MISC Berhad (MISC) entered into a time charter with STL for six of these vessels. Seri Everest will be chartered to STL for a firm period of 15 years and managed by Eaglestar Shipmanagement.

The vessel was built to ABS class and is the first VLEC to be delivered with ABS’ ‘LNG Cargo Ready’ notation released in 2019. The notation provides assurance to owners and charterers that the VLEC can be upgraded to trade LNG cargoes in the future.

ABS chairman, president and chief executive Christopher J Wiernicki said “As part of the shale gas revolution, shipping of liquefied ethane is developing into a significant new market.

At ABS we have supported this development from the early stages and are happy to see this leadership role is being recognised in the current VLEC market.”

MISC group chief executive Yee Yang Chien said “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.”

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

“The VLEC has been built with a cargo containment system for dual cargo loading and the cargo handling system can be converted for LNGC at any time, as needed,” said SHI executive vice president, engineering operations, Hohyun Jeong adding “It has been all thanks to the close co-operation with ABS, STL and MISC working from anywhere, regardless of location, based on non-face-to-face technologies well-prepared in advance.”

A second phase of the order also includes six vessels, bringing the total to 12 VLECs.