HD Korea Shipbuilding & Offshore Engineering has kicked off 2024 with an order for two VLGCs worth KRW 303bn ($230m) from an established client.
The South Korean yard group said it signed a contract with a European owner for the 88,000-cbm LPG carriers due to be delivered in the first and second quarters of 2027.
It did not identify the buyer but said Ulsan-based Hyundai Heavy Industries would build the vessels.
Shipbuilding players following HD KSOE told TradeWinds that Norway’s Solvang is the buyer.
TradeWinds has learned that the ships will be powered by conventional fuel but will have carbon capture technology installed.
They will have a beam of 32.25 metres and be able to sail through the old Panama Canal locks.
“This is a repeat design of the five VLGCs that Solvang ordered at Hyundai last year,” said one source.
It is not known whether the latest newbuildings will operate with the earlier quintet under a joint venture between Solvang and Swiss trader Gunvor’s shipping arm Clearlake announced last October.
Solvang is believed to be paying a little more for its latest duo than it did for the previous vessels.
The earlier five newbuildings were reported to cost about $107.2m apiece and are scheduled for delivery in the second half of 2026. The joint venture chartered the gas carriers long-term.
Gunvor’s expanding presence
Gunvor head of naphtha and LPG Frederic Meeus said the partnership demonstrated Gunvor’s and Solvang’s commitment to investing in the future with the latest, most environmentally responsible vessels, and it underscored Gunvor’s expanding presence in the global LPG market.
According to Clarksons’ Shipping Intelligence Network, 39 VLGCs/very large ammonia carriers were ordered last year, of which 23 were contracted by Hyundai yards.
HD KSOE forecasts strong demand for VLGCs and VLACs to continue this year following an expected rise in tonne-miles for ammonia and LPG business.
HD KSOE achieved 142% of its 2023 order target, securing $15.7bn worth of newbuildings. This year, it has lowered its target to $11.5bn for merchant ships.
The group said the conservative target takes into account the huge volume of newbuildings it secured last year.
