Pan Ocean Signs Long-Term Charter Contract Worth 62 Billion KRW for LNG Bunkering Vessel

[Asia Economy Reporter Dongwoo Lee] Pan Ocean has signed a long-term charter contract for an LNG bunkering vessel with Shell, a major energy shipper. This is an additional order following last year's long-term charter contract for an LNG carrier.

Pan Ocean announced on the 12th that it has signed a 6-year long-term charter contract with Shell for one 18,000 CBM LNG bunkering vessel. The contract amount is approximately 62.1 billion KRW, and it includes an option to extend the contract for up to 2 additional years, making the maximum duration up to 8 years.

The vessel to be deployed under this contract will be an eco-friendly, high-efficiency ship built by Hyundai Mipo Dockyard, reflecting Shell's requirements to improve safety and fuel efficiency compared to existing LNG bunkering vessels while reducing greenhouse gas emissions. The delivery is scheduled for May 2023.

Earlier in February, Pan Ocean also signed a long-term contract for an LNG bunkering vessel with Shell. That contract was a 7-year long-term agreement structured as Pan Ocean purchasing Shell's vessel and chartering it. Shell holds a 6-year extension option, allowing the contract to last up to 13 years. Pan Ocean is set to receive a 6.5K CBM LNG bunkering vessel, which Shell directly designed and operated, next month and will immediately deploy it under the long-term contract.

Industry experts evaluate that Pan Ocean, having been recognized for its LNG vessel operation and management capabilities meeting the standards required by global major companies last year, has newly entered the LNG bunkering market and established a foundation to quickly respond to environmental regulations and other demands.

With this contract, Pan Ocean plans to expand its influence in the eco-friendly energy sector and actively seek opportunities to participate in the upcoming Qatar LNG bidding.

A Pan Ocean official stated, "Through market analysis and proactive risk management, we will continue to expand our business portfolio and invest to actively respond to the recently emerging eco-friendly and ESG-related issues, striving to become a global leading shipping and logistics company."