Borealis (Vienna; www.borealisgroup.com) said it expects to improve the cost competitiveness of its feedstock shipments to Europe through a long-term charter contract with Japanese shipbuilder IINO Kaiun Kaisha (Tokyo; www.iino.co.jp/kaiun/english).

The resin maker has taken delivery of its first vessel under the new agreement, a custom-built VLGC (Very Large Gas Carrier). With a cargo tank capacity of 91,000 m³, the appropriately named Oceanus Aurora is said to be the largest in its class.

The deal supplements Borealis’ long-term charter agreement with Navigator Gas for a dual-fuel MGC (Medium Gas Carrier), which it has used to transport ethane to its facility in Stenungsund, Sweden, since 2016.

With the new VLGC that can be powered by either liquefied petroleum gas (LPG) or low-sulphur fuels, the company plans to ship mainly propane and butane to its crackers and propane dehydrogenation plants in Stenungsund, Kallo (Belgium), and Porvoo (Finland).

Oceanus Aurora is also equipped with emission-lowering motor and propulsion systems that Borealis said will move it closer to achieving its energy and climate targets for base chemicals.

At the same time, the company said it expects the new transport vehicle to deliver “meaningful reductions” in the most common air pollutants from ships, such as nitrogen oxides, sulphur oxides, carbon dioxide, and particulate matter.

The environmental footprint of its feedstock shipments can also be lowered with the installation of an innovative wind propulsion system in the form of two Norsepower Rotorsails, Borealis said. By augmenting the main propulsion system, the sails are claimed to have the potential to reduce total fuel consumption, emissions, and operating costs.

IINO Kaiun Kaisha, which regards itself as a global leader in maritime transportation, has a long history of transporting liquefied gas. The Japanese shipping line ventured into ownership of Very Large Ethane Carriers (VLECs) for the first time in December 2022, signing a long-term charter agreement with Ineos (London; www.ineos.com).

Initially, the Borealis rival said it planned to use its new two VLECs with a volume of 99,000 m³ to supply liquefied natural gas (LNG) to Germany.