Iino Kaiun Kaisha : Borealis and IINO Lines Sign Second Long-term Time Charter Contract for Very Large Gas Carrier

June 6, 2024

Borealis and IINO Lines Sign Second Long-term Time Charter Contract for Very Large Gas Carrier

• World's first Very Large Gas Carrier (VLGC) of Ice Class IB is equipped to reduce fuel consumption and emissions
• Long-termtime charter improves cost competitiveness of transatlantic feedstock shipments

Borealis, one of the world's leading providers of advanced and sustainable polyolefins solutions and a European front-runner in polyolefins recycling, and IINO Kaiun Kaisha, Ltd. (IINO Lines), a global leader in maritime transportation headquartered in Japan, announce the long-term charter of a very large gas carrier (VLGC). This Ice Class IB vessel will be delivered in the first quarter of 2027.

With a cargo tank capacity of 93,000 m3, the vessel will transport raw materials to Borealis' petrochemical plant in Porvoo, Finland, and will contribute to the stable operations of the plant as the world's only ice-strengthened VLGC of Ice Class IB. The Ice Class IB certification is awarded to vessels capable of navigating in light ice conditions with the support of icebreakers, adhering to the Finnish-Swedish Ice Class Rules. These rules encompass the specific requirements for vessels navigating the Baltic Sea during the winter season.

Thanks to its dual-fuel engine, the new vessel can be powered by both liquefied petroleum gas (LPG) and low sulphur fuels. The vessel is the largest VLGC and equipped with a Shaft Generator Motor (SGM) System for electrical power generation from LPG dual fuel. This results in a significant reduction in both fuel consumption and common air pollutants from ships, such as nitrogen oxides (NOx), sulphur oxides (SOx), carbon dioxide (CO2), and particulate matter. Furthermore, the implementation of an onshore power supply system enables the vessel to be powered by shore-side renewable electricity while anchored in port, further reducing its carbon footprint.

Symbolic picture: First VLGC for Borealis, in operation since 2023

Photo: ©Hanwha Ocean

"Maximizing opportunities to enhance our independence and flexibility in transporting cost-competitive light feedstock from overseas to our European base chemicals operations is paramount for our competitiveness to provide sustainable base chemicals and polyolefins solutions. The newly signed charter affords us not only

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competitive flexibility but also aids in reducing the environmental footprint of our transportation operations. This aligns with our strategic Energy & Climate ambitions, demonstrating our commitment to reinventing essentials for sustainable living", says Thomas Van De Velde, Borealis Senior Vice President Base Chemicals and Energy.

"We IINO Lines, are profoundly proud of this second long-term charter to provide safe and flexible transportation in response to Borealis' new strategy of raw material procurement. Our various experience and know-how in operating LPG Carrier since 1960 will not only enable more effective and environmentally sustainable transportation, but also stable plant operation regardless season. We are looking forward to seeing her crossing ice sea to safely deliver LPG to Porvoo." says Ryuichi Osonoe, IINO Lines Senior Managing Executive Officer, Management of Gas Carrier.

END

Media contacts:
Borealis:	IINO Lines:
Borealis Group Media Desk	Gas Carrier Department
Virginia Wieser, Lena Lehner, Karin Schober	Tel. [phone] (Tokyo, Japan)
Tel: [phone] (Vienna, Austria)	E-mail: [e-mail]
E-mail:[e-mail]

About Borealis

Borealis is one of the world's leading providers of advanced and sustainable polyolefin solutions. In Europe, Borealis is als o an innovative leader in polyolefins recycling and a major producer of base chemicals. We leverage our polymer expertise and decades of experience to offer value-adding, innovative and circular material solutions for key industries such as consumer products, energy, healthcare, infrastructure and mobility.

With customers in over 120 countries and head office in Vienna, Austria, Borealis employs around 6,000 people. In 2023, we generated a net profit of EUR 216 million. OMV, the integrated energy, fuels & feedstock and chemicals & materials company headquartered in Vienna, Austria, owns 75% of our shares. The Abu Dhabi National Oil Company (ADNOC), based in the United Arab Emirates (UAE), owns the remaining 25%.

In re-inventing essentials for sustainable living, we build on our commitment to safety, our people, innovation and technology, and performance excellence. We are accelerating the transformation to a circular economy of polyolefins and expanding our geographical footprint to better serve our customers around the globe. Our operations are augmented by two important joint ventures: Borouge (with ADNOC, headquartered in the UAE); and Baystar™ (with TotalEnergies, based in the US).

www.borealisgroup.com|www.borealiseverminds.com

About IINO Kaiun Kaisha, Ltd. (IINO Lines)

IINO Lines is a global shipping company based in Tokyo, established in 1899. IINO Lines has been developing its shipping services as owner and operator specialized in carrying natural energy resources and its related products such as crude oil, LNG, LPG, petrochemical and bulk cargoes. As of March 31, 2024, a total of 96 vessels are owned and operated by IINO Lines, including 4 VLCCs, 36 chemical tankers, 22 dry bulk carriers, 9 large gas carriers, and 25 small gas carriers. In LPG transportation, IINO Lines has almost 60 years history since it started its service of overseas LPG carrier in 1963, and coastal service in 1960 by the first pressurized LPG carrier in Japan. IINO Lines provides safe and reliable shipping services to customers with own technical and crew management backed by long experience and professional personnel. Consolidated revenues for the fiscal year ended March 31, 2024, were JPY138.0 billion. Global offices are located in Shanghai, Singapore, Dubai, London and Houston.

For more information, please visit:https://www.iino.co.jp/kaiun/english/index.html

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