South Korean shipping company Pan Ocean is continuing its expansion into the LNG market with a charter deal for an LNG bunkering vessel.
The company said on Monday it has entered into a time-charter deal with Shell for an LNG bunkering vessel.
The contract is set to start in May 2023 and has a firm period and two extension options for a total of eight years, Pan Ocean said.
The charted deal with Shell for an LNG bunkering vessel is in line with the company’s plans to make a foray into LNG bunkering business and small-scale LNG service.
The two companies have previously inked a charter deal for an LNG carrier pair to be built at Hyundai Heavy Industries. Each LNG carrier will be capable of transporting up to 174,000 cubic meters of LNG and feature X-DF engines.
The vessels are scheduled for delivery by December 2024. Charter deal is for 7 years, starting from September 2024 to October 2031, with extension options that could bring the charter deal to a 13-year total.
The deal also includes an option for an additional LNG carrier newbuild that would be chartered by Shell.