- South Korean company lands deal with Chevron to enhance LNG carriers.
- Demand surges as stricter IMO regulations drive the need for emission reduction.
- Chevron demonstrates a commitment to reducing its carbon footprint.
South Korean company, HD Hyundai Marine Solution Co., lands a deal with Chevron Corp. to enhance LNG carriers. HD Hyundai Marine will install emission-reducing systems including re-liquefaction systems, hull air lubrication, and new gas compressors on Chevron’s two LNG tankers, reports KED Global.
Rapid Growth in Re-Liquefaction System Orders
HD Hyundai Marine’s total re-liquefaction system installation orders soar to $100 million within a year.
The company’s initial order came from a Norwegian ship owner for five LNG carriers, valued at $10 million per ship.
Importance of Re-Liquefaction Systems in Environmental Compliance
Demand surges as stricter IMO regulations drive the need for emission reduction in vessel operations.
Re-liquefaction systems minimize gas loss and carbon emissions by re-liquefying boil-off gas (BOG).
Around 100 relatively new LNG carriers lack re-liquefaction systems, necessitating an estimated $700 million investment for installation.
Chevron’s Green Initiative
Chevron demonstrates a commitment to reducing its carbon footprint by upgrading its energy-delivering vessels.
Previously engaged a Singaporean MRO company to install re-liquefaction systems and other eco-friendly technologies on LNG tankers.
Actively seeking environmentally friendly solutions to enhance its fleet.
HD Hyundai Marine’s Strategic Vision
The company aims to pioneer eco-friendly marine technologies amidst tightening environmental regulations.
Plans to expand beyond vessel aftersales services into retrofitting, bunkering, and digital solutions.
Pursuing opportunities in retrofitting aged LNG tankers to FSRUs and the growing vessel repair service market.
Aggressive Business Diversification
HD Hyundai Marine’s proactive expansion yields significant financial growth.
Operating profit nearly tripled from 2017 to 2022, reaching 142 billion won ($107 million) on the back of a 555% increase in sales.
Affiliated with HD Hyundai, the parent company of leading shipbuilder HD Hyundai Heavy Industries Co.
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Source: KED Global
