- Hyundai Glovis will enter the gas shipping market in 2024 after striking a multi-year deal with commodity trader Trafigura.
- Hyundai Glovis, best known for its car carrier fleet, will ship LNG and ammonia for Trafigura for an initial 10-year period.
- Two 86,000 cu m VLGCs costing $173.2bn will be built as part of the deal.
Hyundai Glovis, the logistics arm of Hyundai Group, will enter the gas shipping market in 2024 after striking a multi-year deal with major commodity trading company Trafigura, reports the Korea Herald.
Shift to a hydrogen value chain
The shipping deal will pave the way for Hyundai Glovis to officially enter the gas shipping market. It was said that the agreement marks the day when the Korean firm slowly moves away from car carriers and shifts to building a hydrogen value chain.
The logistics unit of the Hyundai Group revealed about the deal with Trafigura on Sept. 5. It shared that it will be getting into the gas shipping market with its target date of 2024 after striking a multi-year deal with the Geneva headquartered company.
VLGC vessels to carry LNG & Ammonia
According to The Korea Herald, the deal will have Hyundai Glovis carry liquefied natural gas and ammonia for up to 10 years and these will be sold in the global market.
As part of the new business, the company is set to construct two very large gas carriers or VLGC that measures 86,000 square meters in capacity. It was said that the two vessels entail ₩200 billion or around $173.2 million investment from Hyundai.
The amount is huge because the VLGCs must be made with special materials so they can hold the ammonia. It was said that just about 10% of all the VLGCs in the world have such features so it will really be sturdy and safe. Hyundai said that these materials are definitely different from what they use in LPG carriers.
“We have proved our competitiveness in the gas shipping industry through a long-term deal with a global commodity trading company,” a Hyundai Glovis official stated. “We will also see the process of building a hydrogen value chain gather speed. We plan to carry liquefied hydrogen and take the lead in global hydrogen distribution.”
Growing demand for clean fuel
Trafigura is one of the world’s leading and largest commodities trading firms. In last year alone, it earned around ₩173 trillion and ₩3.4 trillion in operating profit. Its partnership with Hyundai Glovis is its first step towards its foray into new ventures.
Finally, Yonhap News Agency reported that Hyundai’s logistic arm that usually carries cars will now establish its hydrogen delivery business to meet the growing demand for clean fuel around the world.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: The Korea Herald
