Hyundai LNG Shipping is expanding its presence in the LPG segment. The South Korean shipping company is said to have ordered a pair of VLGCs at Hyundai Samho Heavy Industries worth around $156m.
Shipbuilding sources said Hyundai LNG has signed up for two 86,000-cbm vessels at the domestic shipyard for delivery in 2023. The dual-fuel ships will be able to run on LPG or conventional fuels. It is not known if the order includes any options.
An executive at Hyundai LNG confirmed the order.
A gas expert said Hyundai LNG would not order the newbuildings speculatively.
“We believe it has landed charter contracts from South Korean LPG importer E1,” the source said. “But there are no details [on the charters] yet”.
Seoul-headquartered E1 is a major LPG importer, supplying about 50% of South Korea's demand.
Shipbuilding sources have linked Hyundai LNG’s gas carrier newbuildings to two VLGC contracts that Korea Shipbuilding & Offshore Engineering announced early this week.
The Hyundai Heavy Industries Holdings unit, which controls Hyundai Heavy Industries, Hyundai Samho and Hyundai Mipo Dockyard (HMD), said an unnamed Asian owner has ordered two VLGCs for delivery from the second half of 2023.
As the company name suggests, Hyundai LNG specialises in LNG carriers. But in 2019, it diversified into the LPG sector by signing up for one 84,600-cbm scrubber-fitted VLGC newbuilding with HHI.
It had ordered the VLGC against charter contract from E1. The charter rate for the newbuilding was not disclosed but the vessel was fixed for seven years, plus options. The VLGC was reported to have cost Hyundai LNG about $74m.
Hyundai LNG took delivery of the VLGC in September last year and has named the gas carrier as HLS Amber (built 2020).
Hyundai LNG was formed seven years ago when HMM, formerly known as Hyundai Merchant Marine, sold its LNG business to a consortium comprised of IMM Private Equity and IMM Investment for KRW 1trn ($889.1m).
The gas carrier company currently trades eight LNG carriers, transporting 5m tonnes of LNG annually.
