Vitol announces long-term LNG time charter contract with H-Line
Vitol, a global energy and commodities company, and H-Line Shipping (“H-line”), a leading Korean shipping company with a diversified portfolio of vessels under long-term employment, are pleased to announce the execution of a 10-year time charter agreement for a newbuild, latest generation LNG carrier, Vitol says in a press release.
The 174,000m3 vessel with XDF propulsion is to be built at Korea’s Hyundai Samho Heavy Industries (HSHI) and is due for delivery in late 2021. Vitol also holds extension options and the ability to exercise additional LNG carriers to support its further growth in the LNG industry through this partnership with H-line.
Pablo Galante Escobar, Vitol’s head of LNG said: “We are very excited to have concluded this contract with H-Line, a top class Korean shipowner, which represents Vitol’s second long-term charter of a modern 174,000 m3 LNG carrier. This allows us to optimize our LNG portfolio that includes increasing FOB volumes from different areas that we are actively marketing to our global clients.”
Myung Deuk Seo, CEO of H-Line said: “We are very pleased and take pride in signing a long-term LNG transportation contract with a top tier global energy and commodities company like Vitol. We will put our best efforts in every stage from shipbuilding to shipping operations under our contract with Vitol. We will also make full use of our capabilities for successful contract execution based on the company’s fundamental principles, “safety-first” and “eco-friendly” policies.”
Vitol is an energy and commodities company; its primary business is the trading and distribution of energy products globally – it trades over seven million barrels per day of crude oil and products and, at any time, has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including: almost 16mm3 of storage across seven continents, 480kbpd of refining capacity and circa 6,500 service stations across Africa, Australia, Brazil, Eurasia and in Northwest Europe. Revenues in 2018 were $231 billion.
With over 7.8 million tonnes of LNG delivered in 2018 (expected to rise to at least 10 million tonnes in 2019) and an extensive global trading and logistics network developed over a decade of delivering to customers, Vitol is one of the largest and most experienced independent traders of LNG.
Its LNG portfolio comprises multiple medium and long-term contracts with customers from across all continents from Korea Midland Power (KOMIPO) to Angola LNG and Cheniere. These contracts are underpinned by contracts with relevant infrastructure, including shipping and regasification facilities.
H-Line is one of the largest shipping companies in Korea, providing customized dedicated-vessel services and long-term transportation contracts with high profile customer such as KOGAS, POSCO, KEPCO, Hyundai Steel, Vale and etc. H-Line currently operates 55 vessels comprised of bulkers, LNGC and LNG-fuelled Capesize bulkers servicing long term contracts for the customers.
H-line was created in 2014 by Hahn & Company (“Hahn&Co.”), Korea’s largest private equity fund with US$ 7bn AUM, by acquiring long term contract divisions of Hanjin Shipping and Hyundai Merchant Marine, Korea’s largest and second largest shipping companies then. H-line has provided the safe and quality transportation service for over 30 years based on stable long term contracts and is actively expanding businesses in high growth market such as LNG transportation.
H-line is a wholly owned company of Hahn&Co., which also acquired SK Shipping at the end of last year, Korea’s largest and one of the world’s largest wet bulk shipping companies. Hahn&Co. plans to continue to strategically grow its shipping portfolio in the future.