MISC Berhad (MISC) announced today that it has taken delivery of its first Very Large Ethane Carrier (VLEC) at the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea.
The VLEC named Seri Everest, is the first of a series of six VLECs that MISC had purchased in July 2020.
In a statement today, the leading maritime solutions and services provider said, it has also entered into Time Charter Parties (TCPs) with Zhejiang Satellite Petrochemical Co Ltd (STL), for the six VLECs to operate in international waters.
Commenting on Seri Everest’s delivery, MISC president and group chief executive officer Yee Yang Chien remarked: “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 of transporting large scale ethane over long distance while ensuring the highest level of safety and reliability, Yee explained.
He added that MISC hopes to continue to capitalise on this opportunity as it is confident of gaining a strong foothold to cater to the increasing demand in this niche segment.
“We are also pleased that Seri Everest is delivered according to schedule amidst the disruption caused by the global COVID-19 pandemic.
“This successful delivery reflects the industry’s resilience in picking up its momentum with the commitment to safety by all parties.
“I would like to thank everyone who has contributed to this achievement”, he noted.
According to the statement, Seri Everest will be chartered to STL for a firm period of 15 years and managed by Eaglestar Shipmanagement Gas (S) Pte. Ltd.
MISC pointed out, as the second generation VLECs, Seri Everest and the other five VLECs are the largest vessels of its kind in the world and they serve as a more economical and viable solution for large-scale ethane transportation with more than 98,000 cbm of total cargo capacity.
Both shipyards in Korea, SHI and Hyundai Heavy Industries Co Ltd are constructing the rest of the five VLECs scheduled to be delivered in the first half of 2021.
As at Bursa closing today, MISC shares traded at RM6.59 with a market capitalisation of RM29.42 bil. – Oct 30, 2020
