South Korea’s Hyundai Mipo Dockyard (HMD) has raked in a pair of midsize gas carrier (MGC) newbuildings at a record level.
Korea Offshore & Shipbuilding Engineering (KSOE) said an unnamed European owner has signed up for two LPG carriers worth KRW 193bn ($148.3m) or around $74m per ship — just shy of the price paid for the world’s first LPG dual-fuelled VLGC that was ordered four years ago.
KSOE did not disclose the identity of the buyer or the size of the vessels but said the MGCs would be delivered by October 2025.
Shipbuilding sources named Exmar LPG, a joint venture between Exmar and Seapeak — the former Teekay LNG Partners — as behind the order.
They said the ships’ capacity would be 45,000 cbm and the price reflected that their dual-fuel engines would be equipped with shaft generators.
They believe the newbuildings will be ammonia-ready.
The price tag for the MGCs is close to that paid for two LPG dual-fuelled, 86,000-cbm VLGC newbuildings that Exmar ordered four years ago at Jiangnan Shipyard, which were priced at $74.5m apiece.
The two gas carriers, the Flanders Innovation and Flanders Pioneer, were said to be the world’s first dual-fuelled propulsion VLGCs and they were ordered against charter contracts from Equinor.
Officials at KSOE declined to confirm the identity of the owner behind the recent MGC order, citing contract confidentiality. Exmar did not reply to emails seeking confirmation of the orders.
The MGCs are believed to be optional vessels that the company has held at the yard since it penned two similar-sized gas carriers in November 2022. These two newbuildings will be powered by LPG.
At that time, Exmar director Jens Ismar said the new ships formed part of the company’s fleet replacement and expansion programme. He said the MGCs were larger than their standard peers but that their size included a bunker tank.
Brokers said the LPG dual-fuelled MGCs are costing Exmar about $69m each. HMD has scheduled delivery of the first vessel for November 2024 and the second ship for February 2025.
Exmar’s website lists the company with a fleet of 20 MGCs, of which 17 are joint-venture vessels. Some 79% of the fleet is committed to employment.
Newbuilding target
KSOE, a subsidiary of HD Hyundai — previously known as Hyundai Heavy Industries Holdings — is the holding company for Hyundai Heavy Industries, Hyundai Samho Heavy Industries and HMD.
The group has set a $15.74bn newbuilding order target for its three yards this year, down 10% from 2022.
Hyundai yards have so far contracted 47 newbuildings worth $6.3bn, which is about 40% of its target.
KSOE is seeking to expand its presence in the ship-equipment sector.
The group is looking to acquire a 47.8% stake in STX Heavy Industries from local private equity firm Pinetree Partners. It hopes to make use of STX Heavy to diversify its portfolio into small and medium-sized engine firms and create synergies with the group’s shipbuilding subsidiaries.
