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INEOS Enters LNG Shipping Market with MOL Newbuild Charters

Mike Schuler
Total Views: 996
June 28, 2023

London-based petrochemicals manufacturer INEOS Energy Trading has signed long-term charter agreements with Mitsui O.S.K. Lines (MOL) for two newbuild LNG carriers to transport natural gas to Germany from the United States.

The charters mark INEOS’ entry into the LNG shipping market, adding to its existing chartered fleet of 12 ethane and naphtha carriers.

INEOS’ commitment follows a long-term Sales and Purchase Agreement signed with Sempra for 1.4 million metric tons per year of LNG out of Port Arthur, Texas, as well as the purchase of long-term LNG regasification terminal capacity in Brunsbuttel, Germany.

The two vessels have a capacity of 174,000 cubic meters. MOL has placed an order at Hanwha Ocean’s Okpo Shipyard in South Korea with deliveries planned in 2027.

INEOS plans to use its experience as the largest ethane gas transporter to develop an LNG “pipeline” into Europe to meet its own demand and that of third parties.

The two vessels will be equipped with MAN Energy Solutions engines (ME-GA) and feature additional energy efficient technologies such as Air Lubrication technology and Shaft Generators.

“It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design,” said David Bucknall, CEO of Ineos Energy Trading. “We agreed an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip. We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future.”

“We are delighted to be working with MOL, who have a great deal of experience shipping LNG and an excellent reputation. We look forward to developing the relationship, both during the charter period and beyond,” said Bucknall.

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