South Korea’s KSS Line has returned to Hyundai Heavy Industries for another pair of VLGC newbuildings.
The Seoul-based company's order for the 84,000-cbm gas carriers at the South Korean yard brings the total number of VLGCs it has on order there to three.
A KSS spokesman confirmed the booking, saying the scrubber-fitted vessels were ordered against a long-term charter contract from a European company.
“KSS does not invest in new tonnage based on speculation,” he said.
Delivery dates for the two newbuildings are set for the first half of 2021.
KSS said the design of the three VLGC newbuildings at HHI was jointly developed with the yard. The 84,000-cbm ships will be able to pass through the old locks of the Panama Canal, enabling charterers to save costs.
Four-year deal
According to market sources, Dubai-based BGN International DMCC has chartered the VLGC newbuildings for more than four years. The value of the contracts was not disclosed.
BGN is the trading and shipping arm of Bayegan Group, the Turkish distributor of petrochemicals and refined products.
In June, KSS commissioned HHI to construct a VLGC newbuilding against a long-term charter from Spain’s Vilma Oil at $830,000 per month. The gas carrier, which will also be fitted with scrubbers, was reported to cost $74m and is scheduled to roll out of the dry dock in early 2021. Vilma is an LPG trader and was founded in 1996.
KSS is believed to be paying the same price for its latest gas carrier newbuildings at HHI.
Vilma and BGN are said to be new clients to KSS.
KSS controls a fleet of 27 vessels, comprising 15 LPG ships, four LNG carriers and eight chemical tankers. The company is listed on the Korea Stock Exchange.
