Pan Ocean Signs Two Additional Long-Term Contracts for LNG Carriers with Shell

[Asia Economy Reporter Dongwoo Lee] Pan Ocean announced on the 14th that it has signed a long-term time charter (TC) contract worth 364.8 billion KRW with the global energy company 'Shell' for two liquefied natural gas (LNG) carriers.

Pan Ocean ordered two new 174,000 CBM LNG carriers, which are scheduled to be delivered in October and December 2024, respectively, and plans to fulfill the seven-year contract signed with Shell. Shell holds an option to extend the contract for up to an additional six years, making the total contract duration up to 13 years.

This contract is an exercise of the option for the long-term time charter contract for two 174,000 CBM LNG carriers that Shell signed with Pan Ocean in December last year. With this additional contract, Pan Ocean has secured long-term contracts for four 174,000 CBM LNG carriers with Shell.

Pan Ocean explained that LNG is an eco-friendly energy source and that this is the result of continuous efforts to expand its business portfolio and strengthen competitiveness in consideration of the expected increase in demand and freight rates.

Since December last year, Pan Ocean has secured a total of seven vessels, including five LNG carriers and two LNG bunkering vessels. Including the existing LNG KOLT vessel owned by Korea Gas Corporation, Pan Ocean has established a fleet of eight vessels, solidifying its position in the LNG business sector.

Jung-ho Ahn, CEO of Pan Ocean, said, “Based on this contract, we will do our best in the Qatar LNG project currently underway with KC (Korea Consortium). We will strive to become a sustainable global leading shipping and logistics company by strengthening not only dry bulk but also grain trading and eco-friendly energy sectors.”

This content was produced with the assistance of AI translation services.