Greek shipowner Alpha Gas is joining the rush for very large ammonia carriers (VLACs) with plans to break into the sector with orders for up to four newbuildings at two different shipbuilders in South Korea.
Newbuilding sources said Alpha Gas has already struck a deal with HD Hyundai Heavy Industries (HD HHI) and is the company behind the pair of VLACs announced by the Korea Stock Exchange-listed shipyard on Thursday.
Ulsan-based HD HHI said an Oceania-registered shipowner ordered two VLACs to be delivered by April 2027.
The value of the newbuildings contract is put at KRW 333bn ($249m) or about $124.5m each. The 88,000-cbm ships will be fitted with shaft generators.
Managers at the company, which is controlled by the family of Anna Angelicoussis-Kanellakis, did not respond to a request for comment.
Alpha Gas is also understood to have approached Hanwha Ocean to build two VLACs.
Sources told TradeWinds that the Greek company is close to concluding its VLAC newbuilding talks with Hanwha Ocean, with the contract likely to be inked by the end of January.
They indicated that the vessels will cost at least $125m apiece as their size of 93,000 cbm is slightly larger than the VLACs Alpha commissioned at HD HHI.
The delivery dates on the Hanwha gas carriers will be in 2027.
Next generation ships
If confirmed, Alpha Gas’ orders will mark the company’s entry into the VLGC/VLAC sector.
VLACs are essentially the very large gas carriers (VLGCs) of the next generation, in that they have been designed to be capable of carrying full cargoes of ammonia.
They are expected to start off in the LPG trades — for which market analysts are giving a positive long-term outlook — from their deliveries but will be ready to transition into the future market for ammonia.
The smaller 88,000-cbm VLACs are capable of transiting the Panama Canal. But some owners are opting to go for larger sizes to tap into the economies of scale for the anticipated long-haul ammonia trades from the US and Middle East.
The ship type has attracted several companies to the large LPG sector, including Maersk Tankers, George Economou’s TMS Cardiff Gas, Turkey’s PascoGas and Capital Maritime & Trading.
Clarksons’ Shipping Intelligence Network is currently listing 27 existing orders for VLACs.
This week TMS Cardiff Gas doubled up on its two-ship order at Samsung Heavy Industries.
TradeWinds has learned of other ongoing enquiries for VLACs.
But berth spaces are rapidly disappearing at shipyards for delivery dates in 2027 leading to some hot and ongoing competition for slots.
