A MEMORANDUM of understanding has been inked by Samudera Shipping to acquire two ethylene gas vessels for US$12.6 million, said the company in an announcement on Wednesday (Dec 27).

The vessels are Bahamas-flagged and were built in 2009 and 2010. They will be renamed Sinar Ternate and Sinar Tidore. The company will determine the flag of the vessels before their deliveries.

This acquisition will be financed via bank borrowings and internal resources.

The rationale for the purchase of these vessels is to expand Samudera’s fleet and allow it to sign more charter contracts. The company is also hoping to ride on the growing ethylene market in Indonesia. The chemical is widely used as a feedstock in petrochemical plants.

Shares of Samudera closed unchanged at S$0.65 on Wednesday.