EPS inks 15-year contract for 4 x dual-fuel VLECs

The 15-year time charter covers the carriage of ethane between the US Gulf Coast and STL’s plant in Lianyungang, China. The order marks the first entry of Singapore-based EPS into the ethane trade.

According to an EPS statement published on their website, the four 98,000cbm VLEC vessels will be powered by dual-fuel engines capable of operating on ethane.

The announcement of the term charter agreement was accompanied by a novation agreement. The VLECs will be built at South Korea’s Hyundai Heavy Industries and Samsung Heavy Industries and are scheduled for delivery in the first half of 2022.

EPS CEO Cyril Ducau said, “We are extremely pleased to partner with STL and enter the ethane carrier segment. Both companies share a vision of being the green and technology-driven leaders in our respective industries. This made the negotiations and subsequent agreement an enjoyable and seamless process. For EPS, the addition of these four vessels complement our existing, and growing, mid and large gas carrier fleet. This deal also serves as an example of our commitment to using alternative marine fuels as transitional fuels towards decarbonisation and the preservation of the environment for future generations. This 15-year charter is a major milestone for us that will strengthen our foundation as we grow and diversify our fleet.”