Turkey’s PascoGas has been linked to an order for two LPG carrier newbuildings that was announced by Korea Shipbuilding & Offshore Engineering (KSOE) on 1 July.

Shipbuilding sources following the LPG market said the Turkish company has signed up for one firm vessel plus an option for a second ship.

The firm 40,000-cbm LPG carrier is the third newbuilding that PascoGas has booked at Hyundai Mipo Dockyard (HMD). The company’s earlier two gas carriers were ordered last year.

Officials at HMD declined to disclose the identity of the owner when asked, citing contract confidentiality. PascoGas did not immediately respond to emails seeking confirmation.

Local news agencies reported the value of the latest two 40,000-cbm LPG newbuildings to be KRW 182.1bn ($140m), but shipbuilding sources said the figure was incorrect.

They said PascoGas paid about $64m for each ship and is slated to take delivery of the firm unit in the first half of 2025.

The ships are costing about one-third more than PascoGas’ earlier two newbuildings, which are due to roll out of the dry dock in May and August 2023. The pair was contracted at about $47m apiece.

Rising material and labour costs were cited by sources as being behind the price hike.

Sources said PascoGas’ environmental, social and governance policy, which calls for the use of cleaner fuels as a means to lower the industry’s carbon footprint, inspired the newbuildings.

PascoGas has also added to its fleet with secondhand vessels, with TradeWinds reporting the company had bought one gas carrier from Exmar in May, the 38,961-cbm Eupen (built 1999), for $16m.

PascoGas was established in 2019, according to IHS Markit. Industry sources said the company was a joint venture between several outfits including Turkish peer Negmar Denizcilik.

But the partnership with Negmar is said to have been dissolved last year.

The Turkish company currently owns and commercially manages two LPG carriers — the 38,000-cbm IGLC Anka and IGLC Dicle (both built 2013) — that were previously controlled by Negmar.

KSOE is a subsidiary of HD Hyundai — previously known as Hyundai Heavy Industries Holdings — and is the holding company for Hyundai Heavy Industries, HMD and Hyundai Samho Heavy Industries.

The shipbuilding group said it has so far contracted orders to build 124 ships worth $14.4bn for this year. It has already achieved close to 83% of its order target of $17.44bn.