Ineos debuts in LNG sector with MOL newbuilding charters

Ineos Energy Trading has made its first foray into the LNG market by signing a charter agreement with Mitsui OSK Lines (MOL) for two newbuild LNG carriers.

Ineos said that the two vessels will be used for the import of LNG into Germany from the United States.

The company added that it would capitalise 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 demand, as well as that of select third parties.

Both vessels have a capacity of 174,000 cubic metres and are being built at the Hanwha Ocean, the Korean yard formerly known as Daewoo Shipbuilding & Marine Engineering.

The deal with MOL comes after the signing of a long-term sales and purchase agreement with Sempra for 1.4m tonnes per year of supply out of Port Arthur and the purchase of long-term regasification capacity in Brunsbuttel, a German LNG terminal.

“It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design. We agreed on an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip,” David Bucknall, CEO of Ineos Energy Trading, said.