South Korean shipbuilder HD Hyundai Mipo (HMD) has secured a significant order for two liquefied petroleum gas carriers (LPGCs). The contract is valued at KRW 230.6 billion, which is approximately $161.8 million, reports Offshore Energy.
Numerous Contracts
HD Hyundai Mipo Dockyard (HMD), headquartered in Ulsan, South Korea, has secured a contract to build two new liquefied petroleum gas (LPG) carriers. While HMD has not officially disclosed the identity of the shipowner, market speculation suggests that Nieto Trading, an energy and oil/gas sector company based in the Netherlands, may be the entity behind the order.
According to HD Hyundai Mipo’s filing with the stock exchange, the contract is expected to conclude by the end of July 2027, which is the anticipated delivery timeframe for the two vessels.
Over the recent years, both HMD and its sister company, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), both integral parts of the HD Hyundai Group based in Seoul, have been actively involved in securing numerous contracts for the construction of various types of gas carriers.
As an example of their recent activities in this sector, at the beginning of January of this year, HMD held a first steel cutting ceremony for a 46,000 cubic meter (cbm) liquefied petroleum gas (LPG) carrier. This vessel will be equipped with an ammonia dual-fuel engine. The order for this vessel came from Belgian shipping company EXMAR and is part of a larger batch of six dual-fuel LPG/ammonia midsize gas carriers (MGCs) that EXMAR booked through its joint venture with Seapeak. This highlights the growing trend towards dual-fuel technology in gas carriers, allowing for greater operational flexibility and reduced emissions.
Expanding Fleet
In addition to the recent order from a potential Dutch owner, Turkish shipping company Pasco Gas also commissioned HD Hyundai Mipo for the construction of two midsize 45,000 cbm LPG carriers in 2023. One of these orders was placed at the beginning of the year, with the second being added towards the end of 2023.
Furthermore, it has been disclosed that these LPG carriers for Pasco Gas, along with two other vessels being built for Purus – a maritime service provider for the gas transport and offshore wind industries with bases in Singapore and Hong Kong – will be equipped with cargo handling systems supplied by the Finnish technology company Wärtsilä.
On the other side of the HD Hyundai Group, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) is on track to deliver at least eight gas carriers by the end of the third quarter of 2027. This includes four LPG carriers and four very large ammonia carriers (VLACs). Specifically, in January 2024, HD KSOE secured a contract valued at KRW 317 billion (approximately $240 million) for a pair of VLACs and a pair of LPGCs. These newbuilds are scheduled to join the fleet of their Oceania-based owner by the end of March 2027.
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Source: Offshore Energy
