HD KSOE Wins $286mn Order for Four MGCs

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South Korea’s top shipbuilder HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE) announced on Thursday that it signed a contract with the global commodity trading company Trafigura to build four medium-sized gas carriers (MGCs), reports The Korea Economic Daily.

About the order value

The total order value is 389.9 billion won ($286 million).

The four MGCs are to be constructed by HD Hyundai Mipo and are scheduled for delivery by November 2027.

According to Reuters, Trafigura said these vessels can use ammonia as fuel in a statement related to this order.

These ships will be equipped with dual-fuel engines capable of using low-carbon ammonia and will be used to transport liquefied natural gas (LNG) or ammonia.

Ammonia is considered one of the candidates for low-carbon alternative fuels for ships.

Trafigura aims to reduce the carbon intensity of its fleet by 25% by 2030. The company operates around 400 vessels, making over 5,000 voyages annually.

With this order, HD KSOE has secured 94 vessels (including one offshore facility), amounting to $10.6 billion, thus achieving 78.5% of its annual target of $13.5 billion.

The orders include 6 liquefied natural gas (LNG) carriers, 32 petrochemical product carriers (PCs), 36 LPG/ammonia carriers, 1 ethane carrier, 2 liquefied carbon dioxide carriers, 6 very large crude carriers (VLCCs), 3 tankers, 2 pure car and truck carriers (PCTCs), 1 floating storage and regasification unit (FSRU), 1 offshore facility, and 4 specialty vessels.

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Source: The Korea Economic Daily