RIL arm in JV with MOL to operate 6 very large ethane carriers
18 April 2019
Japan’s Mitsui OSK Lines Ltd (MOL) will acquire a strategic stake in six group companies of Reliance Industries for operating six very large ethane carriers (VLECs). MOL is the current operator of all the six vessels owned by RIL.
Reliance Industries Ltd (RIL) through its wholly owned subsidiary in Singapore, Reliance Ethane Holding Pte Ltd (REHPL), owns 100 per cent stake in the six limited liability companies (LLCs), each owning a VLEC.
Mitsui OSK Lines Ltd (MOL) and the LLCs have signed binding definitive agreements for a strategic investment by MOL and the minority investor in the six special purpose limited liability companies (SPVs).
The closing of the transaction is subject to regulatory approvals. Post closing SPVs will be jointly controlled by REHPL and MOL, RIL stated in a release.
“Given MOL is currently the operator of all the six VLECs, investment by MOL will deepen our relationship with them and ensure continued safe and efficient operations of the VLECs. We welcome MOL as a strategic partner into the SPVs as they move beyond the current operator role to joint owner and operator role in the SPVs,” PMS Prasad, executive director of RIL, said.
“This investment would enable MOL to add six unique VLECs, which we have been operating for some time now, as owners to its existing fleet of over 850 vessels which include LNG carrier, other tankers, dry bulkers, car carriers, ferries and coastal RoRo ships and cruise ships,” Takeshi Hashimoto, member of the board and executive vice president of MOL, said.
“MOL has detailed knowledge about these assets having supervised the construction and delivery of the six VLECs and subsequently operating them since their delivery. We are therefore happy and look forward to use this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance,” he added.
Mitsui OSK Lines Ltd (MOL), one of the largest shipping companies in the world celebrating its 135th anniversary, provides ocean shipping services internationally. It owns and operates a fleet size of over 850 vessels and is also the largest LNG carrier in the world. MOL’s fleet also includes other tankers, dry bulkers, car carriers, ferries and coastal RoRo ships and cruise ships.
MOL also own container ships which are chartered by ONE. MOL is listed on Tokyo Stock Exchange and has a market capitalisation of about $2.8bn.