The Austrian chemicals giant, Borealis is looking forward to partner with the Japanese shipping firm, IINO to get access to the latter’s environmentally friendly and reliable Very Large Gas Carrier (VLGC) shipping solutions. Borealis AG (Borealis) and the IINO Kaiun Kaisha Ltd. (IINO) on 13th January, Wednesday announced the order of a VLGC worth 91,000 Cubic Meter (CBM) at Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) in South Korea. The liquefied petroleum gas (LPG) dual fuel is set for delivery in the Q1 of 2023 via time charter to Borealis.
This ship would be IINO’s second VLGC possessing an LPG dual fuel engine. LPG is an environmentally advantageous fuel, reducing emissions of particulate matter (PM), carbon dioxide (CO2), sulphur oxide (SOx) and nitrogen oxide (NOx) compared to conventional heavy fuel oil. As per the company’s recent press release, DSME’s ship will be equipped with a unique Shaft Generator Motor (SGM) system which would generate the electric power from the LPG dual fuel engine during navigation and would ensure lower fuel or lubricant oil consumption and lesser carbon emissions.
This deal is aimed at supporting Borealis’ future sourcing of feedstock for their under-construction world-scale Propane dehydrogenation plant in Kallo, Belgium. The company’s PDH plant is targeted to have an annual production capacity of 750 KTPA, making it one of the largest Propylene production facilities of times. The production at the plant is anticipated to commence by the end of 2022.
IINO is a leading company having years-long expertise in LPG shipping business with connections across local and overseas LPG charterers, end-users and traders via medium to long term contracts. This partnership would be an important milestone for IINO to meet its set target of reducing its Green House Gas (GHG) emissions per transport unit in its operating ships by 40% till 2030. Borealis is one of the global leaders in providing technically sound and circular polyolefin solutions. It is a global producer of base chemicals, fertilizers and polymers with its presence across 120 countries.
As per ChemAnalyst,” The new PDH unit would be the most important building block in strengthening Borealis’ market share in the European petrochemical industry. Propylene thus produced would act as an important raw material for a wide variety of products. It would be used for the production of chemical feedstocks like Propylene Oxide, Acrylonitrile, Cumene and Acrylic Acid and also for the production of polymers like Polypropylene.”