Reliance ropes in Mitsui to ship ethane from US to India

Reliance Industries Ltd (RIL) has signed shipping agreements with one of the world’s largest shipping companies Mitsui O S K Lines Ltd (MOL) for transporting liquefied ethane from the US to India. This will make MOL to be the first shipping company who is dedicated for a continuous liquefied ethane transportation by very large ethane carrier (VLEC).
 
MOL will supervise the construction of six VLECs, ordered by Reliance Industries to be specifically built by Samsung Heavy Industries Co Ltd. Six VLECs are expected to be delivered in the last quarter of 2016 and will enter into service thereafter. Mitsui will also operate and manage the vessels after they are built and delivered.
 
RIL, with this strategic tie-up with Mitsui, has achieved a key milestone for the successful implementation of ethane import project to feed crackers in India.
 
“While MOL declared in New Midterm Management Plan ‘Steer for 2020’ a direction to allocate management resources earlier and significantly to businesses where we expect high growth and stable long-term profits taking advantage of the shale revolution, this strategic association has been concluded definitely in line with this direction,” said MOL in a press release.
 
VLECs, being a hybrid of LNG carrier and LPG carrier, required the expertise in both the LNG carriers and LPG carriers. Considering MOL’s rich experience for both type of carriers it is in better position to leverage on its existing capabilities to tap this new opportunity.