Trading giant Trafigura has returned to Hyundai Heavy Industries for a pair of VLGC newbuildings worth KRW 197.2bn ($163m).
The trader has confirmed it is the client behind a contract announced earlier this week by the South Korean shipbuilder to build two 90,000-cbm dual-fuel gas tankers.
HHI sister company Hyundai Samho Heavy Industries will construct the pair, which will be the world’s largest.
Compliant fuel
“We can confirm that we are indirectly behind this order, where the intention is to have the ability to burn either LPG or compliant fuel in the engine," a Trafigura spokesperson said.
"The fact that the vessels have the commodity to be utilised as bunker fuel onboard enables us to minimise long-term exposure to compliant fuel logistics and pricing.”
The vessels will be delivered in mid-2021 and are intended to form part of Trafigura's current trading programme, the company added.
The fact that the vessels have the commodity to be utilised as bunker fuel onboard enables us to minimise long-term exposure to compliant fuel logistics and pricing
Trafigura spokesperson
"Trafigura remains one of the largest traders/operators of scrubber-fitted technology across the wet segments. In the LPG space, we will continue to develop our scrubber position alongside LPG-fuelled technology.”
TradeWinds first revealed that Trafigura was planning to order LPG-fuelled VLGCs in June.
Long-term charter
Shipbuilding players believe Trafigura is likely to novate the contract to another company. It will then take the ships on long-term charter.
“It will be a similar move to its previous order,” one industry expert said.
Last year, Trafigura ordered four scrubber-fitted 80,000-cbm VLGC newbuildings at HHI. The order was reported to have been done with leasing house China Construction Bank Financial Leasing, with each vessel costing about $70m.
Trafigura has taken delivery of three vessels, with the fourth, the Dom Explorer, due next month.
Dual-fuel orders
Including Trafigura’s contract, a total of seven dual-fuel VLGC newbuildings have now been ordered.
The others are of between 84,000 cbm and 86,000 cbm.
Singapore’s Kumiai Navigation has ordered an 84,000-cbm VLGC at Kawasaki Heavy Industries, while Belgium’s Exmar and China’s Tianjin Southwest Maritime have each signed up for two 86,000-cbm ships at Jiangnan Shipyard.
