Shenzhen-listed Oriental Energy, a Chinese liquefied petroleum gas (LPG) trader, has secured a vessel chartering deal with Hartmann Schiffahrts.
The deal over five very large gas carriers (VLGCs) was approved by its shareholders in the first half of 2015, a stock filing of Oriental Energy said on 26 August.
Related news: Oriental Energy still awaits approval for VLGC deal
In September 2014, the company announced that it had signed a 10-year timecharter contract with Hartmann Schiffahrts over five 84,600 m³ VLGCs. The newbuilds were expected to be delivered between May 2017 and January 2018. Oriental Energy has the option to charter in the vessels for another five years after expiration of the contracts. The charter hires were expected to be as much as USD120 million per year.
In addition, Oriental Energy said it would secure LPG shipping capacity of eight VLGCs from 2016. The vessels will be on charterparty with Pacific Gas, a subsidiary of Shandong Shipping, Japanese-owned Kumiai Senpaku, and Petredec.
The three shipowners will deliver four, one, and three VLGCs respectively to Oriental Energy as scheduled.
With Pacific Gas, the four VLGCs will be chartered in at USD60 million a year. Oriental Energy will charter in one VLGCs from Kumiai Senpaku at an annual rate of USD13 million a year. With Petredec, the charter hires for three VLGCs are expected to be an aggregate of USD37.5 million per year.