Denmark’s Maersk Tankers has doubled its order for very large ammonia carriers at HD Hyundai Samho Heavy Industries, firming up four optional newbuildings it was holding in a KRW 631.9bn ($466m) deal.
Chief investment officer Claus Gronborg confirmed to TradeWinds that Maersk Tankers has lifted the options on eight of the 10 VLAC berths that it confirmed with the South Korean shipyard in December.
HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced the orders on Tuesday without naming the shipowner.
The contract details priced this latest quartet of 93,000-cbm VLACs at $116.9m per ship.
Mokpo-based HD Hyundai Samho Heavy Industries is scheduled to deliver them by July 2028.
This leaves Maersk Tankers with two outstanding options for VLACs at the yard.
The company originally co-ordered up to 10 VLACs at Hyundai Samho Heavy Industries in its big December deal.
This first order, in which Japanese trading house Mitsui & Co was a co-investor, was for four firm vessels for delivery dates in 2026 and 2027, plus two tranches of optional vessels for six additional ships.
At the time, brokers were pricing VLACs at more than $120m per ship.
Industry players said the price of Maersk Tankers’ latest four newbuildings appears low compared with HD KSOE’s March contract with Atlas Maritime for three VLACs priced at $124m each.
The 93,000-cbm newbuildings will be among the largest ammonia carriers in operation, Maersk Tankers said in announcing the deal in December.
The Danish company plans to operate the ships on delivery and is working with MAN Energy Solutions and Hyundai Heavy Industries to make the vessels capable of running on clean ammonia.
However, it said a decision to install ammonia-capable engines “requires both regulatory and customer support”.
The VLAC vessel type is essentially a next-generation VLGC that has been designed to carry full cargoes of ammonia.
These ships are expected to begin their trading lives in the LPG trades — for which analysts are giving a positive long-term outlook — but will be ready to transition into the future market for ammonia.
According to Clarksons’ Shipping Intelligence Network, the orderbook for VLAC newbuildings stands at 42.
Companies that have ordered this ship type include Eastern Pacific Shipping, Capital Maritime, Naftomar Shipping & Trading, Cardiff Marine and Alpha Tankers.
HD KSOE has now signed contracts for 86 newbuildings — including one offshore unit — in 2024 worth $9.86bn in total, achieving 73% of its annual target of $13.5bn.
