MISC enters global ethane market with six-vessel purchase

MISC announced on Wednesday (Jul15) that the Company has entered into Memorandum of Agreements (MOAs) with six indirect wholly-owned subsidiaries of Zhejiang Satellite Petrochemical Co. Ltd., for the purchase of six newbuild 98,000 cubic meters Very Large Ethane Carriers. 

Concurrently, MISC, through its vessel-owning entity, namely Portovenere and Lerici (Singapore) Pte. Ltd. (PLS) has entered into Time Charter Parties (TCPs) with Zhejiang Satellite Petrochemical Co. Ltd. (STL) for the time charter of the six Vessels for operations in international waters.

Pursuant to the MOAs and TCPs, the Vessels will be purchased by MISC for approximately USD 726 million and chartered to STL through PLS for a firm period of 15 years. The charters for the Vessels are expected to commence in the 4th Quarter of 2020. Samsung Heavy Industries Co., Ltd. and Hyundai Heavy Industries Co., Ltd., both shipyards in Korea, are constructing three (3) Vessels each.

PLS is a private company limited by shares incorporated in Singapore with paid-up capital of SGD50,000.00 divided into 50,000 ordinary shares and is an indirect wholly-owned subsidiary of MISC.

STL, a private company listed on the Shenzhen Stock Exchange and headquartered in Zhejiang, China, is a leading petrochemical company in China with main business in the production and sale of propylene-based products. The Sellers, all of which are incorporated in Hong Kong, China are identified below: