South Korean shipbuilding giant HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has clinched an agreement to construct three very large ammonia carriers (VLACs) under a deal worth $372 million, says an article published on offshore energy website.
Summary
- HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has secured a deal worth $372 million to construct three very large ammonia carriers (VLACs) for an undisclosed shipping company based in Oceania.
- HD Hyundai Heavy Industries (HD HHI), a division of HD KSOE, will oversee the construction of the vessels, scheduled for delivery by the end of December 2027.
- This contract contributes to HD KSOE’s strong performance in 2027, with orders for 72 vessels totaling $8.75 billion, representing 64.8% of its yearly target.
- Previous orders include three VLACs for a shipping company in Central and South America, emphasizing the company’s success in securing contracts for large-scale vessels.
Contract Details
The order was secured from an undisclosed shipping company based in Oceania. HD Hyundai Heavy Industries (HD HHI), a division of HD Korea Shipbuilding, will oversee the construction of the ammonia carriers. The contract, valued at KRW 489.6 billion, stipulates that the vessels are slated for delivery by the end of December 2027, as per HD KSOE’s disclosure to the stock exchange.
Yearly Performance And Order Breakdown
HD KSOE’s success in securing this order contributes to its robust performance in 2027. Since the beginning of the year, the shipbuilder has secured orders for the construction of 72 vessels amounting to $8.75 billion, representing 64.8% of its yearly target of $13.5 billion.
These orders span various vessel types, including liquefied natural gas (LNG) carriers, petrochemical carriers, liquefied petroleum gas and ammonia carriers, as well as very large and ultra-large crude carriers.
Previous Orders
Earlier in January, HD KSOE won an order to build three VLACs for a shipping company in Central and South America, valued at KRW 491.1 billion ($366 million). This underscores the company’s continued success in securing contracts for the construction of large-scale vessels.
Industry Outlook
The demand for ammonia carriers reflects the maritime industry’s shift towards cleaner energy sources and sustainable shipping solutions. As the world transitions towards decarbonization, ammonia is increasingly viewed as a promising alternative fuel for the shipping sector.
HD KSOE’s involvement in the construction of these VLACs demonstrates its commitment to meeting the evolving needs of the global shipping market.
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Source: offshore energy
