South Korea’s Hyundai LNG Shipping has jumped into the VLGC segment by landing a long-term charter with a domestic LPG-importing company.
Industry sources said E1 is the charterer behind the shipowner's order for a 84,600-cbm gas tanker at Hyundai Heavy Industries. The LPG importer has fixed the VLGC for seven years, plus options, but the charter rate has not been disclosed.
Seoul-headquartered E1 is a major LPG importer, supplying about 50% of South Korea's demand.
Hyundai LNG declined to comment on the identity of the charterer, citing contract confidentiality.
Last week, Hyundai LNG president and chief executive KyuBong Lee announced the VLGC order, without naming the charterer.
'Meaningful relationship'
“We are very grateful to build a meaningful relationship with a respectable charterer through long-term contract and to build the ship at the world's best shipping yard," he said.
"All of our employees will do our best to provide the best shipping solution, which will meet the customer’s needs in a very safe and reliable operation.”
Shipbuilding sources believe Hyundai LNG is paying about $74m for the scrubber-fitted VLGC.
The company also holds an option for a second vessel at HHI. The Ulsan-based shipbuilder is scheduled to deliver the firm gas tanker in the third quarter of 2020.
Hyundai LNG was established in 2014 when Hyundai Merchant Marine sold its LNG business to a consortium comprised of IMM Private Equity and IMM Investment for KRW 1trn ($876m).
The shipowner currently has eight LNG carriers built between 1994 and 2017. Hyundai LNG has the largest LNG fleet in South Korea, and its ships deliver about 28% of the nation's imported volumes of free-on-board contracted LNG.
