INEOS Ventures into LNG Carrier Market with MOL Charter Deal

June 28, 2023

Illustration only - Credit: moofushi/AdobeStock

Japan's Mitsui O.S.K. Lines,(MOL) has signed a long-term agreement with INEOS Energy Trading, a subsidiary of UK-based INEOS Group Ltd., for the charter of two newbuild LNG carriers.

This marks INEOS' entry into the LNG carrier market, and INEOS will use the vessel for the import of LNG into Germany from the United States.

"These agreements are a significant milestone for INEOS Energy Trading following the long-term Sales and Purchase Agreement signed with Sempra for 1.4 mtpa of supply out of Port Arthur and the purchase of long-term regasification capacity in Brunsbuttel, the German LNG terminal.

INEOS will capitalize on its experience as the largest transporter of ethane gas from the US to Europe and Asia, to develop a ‘pipeline’ of LNG into Europe to service its own demand, as well as that of select third parties," Ineos said.

Both slated for delivery in 2027, the LNG carriers will be built at South Korea's Okpo Shipyard of Hanwha Ocean Co., Ltd.and will be equipped with the latest MAN Energy Solutions engines (ME-GA) as well as Air Lubrication Systems (ALS) to reduce drag on the ships' hulls from seawater and Shaft Generators (SG) to increase the overall operational efficiencies of the two sister vessels.

The vessels will have a cargo capacity of 174,000 m3 each and will be suitable to operate globally, between the world's major LNG terminals.

The vessels will be 294.9 meters long, with a breadth of 46.4 meters. The LNG carriers will add to INEOS’ growing fleet which consists of 12 dedicated ethane carriers.

David Bucknall, CEO of Ineos Energy Trading said “It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design. 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.”