BRUSSELS (ICIS)--The anticipated increase in global ethylene production capacity will require 20 new ethylene vessels to be built between 2011 and 2015, a major gas ship owner said on Wednesday.
“Historically we have seen world ethylene as monomers traded seaborne at 4% of world ethylene production,” said Terje Orehagen, president and chief operating officer (COO) of Norgas Carriers at the one-day 6th ICIS World Olefins Conference in Brussels, Belgium.
“We expect a steady recovery from 2010 forward… which would represent an additional 1.25m tonnes of ethylene exports per year… and will require 20-25 ships of above 8,000 cubic metres (cbm) for regular long haul transportation,” he added.
“It takes two years to build a [gas] ship, so the ethylene shipping market will remain balanced to tight,” he said.
The proportion of world ethylene production which is transported by sea has been steady at 4% in the past five years, and a third of this volume is through traders.
“A huge number of new gas carriers came on to the market in 2006-2007, but strangely all of them have been absorbed,” he added.
In response to questions from the floor about the problem of piracy, he remarked that for his fleet, which is regularly passing through the
Vessels are delayed by two to five days in waiting for naval escorts, and additional security personnel are required for three days, boarding in
The vessel hijackers are well informed about ship movements.
“The pirates are googling vessels and arrival dates,” he added.
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