KSS LINE signs a long-term LPG transport worth KRW 214.4 billion and decide to invest in two new eco-friendly 86,000 CBM VLGCs equipped with LPG dual fuel propulsion engine, says a press release published on their website.
LPG Transportation Contract
Signs additional transportation contract for two new vessels with BGN Group, a global energy company.
Eco-friendly vessel with LPG dual fuel propulsion engine KSS LINE decide to invest in two new eco-friendly 86,000 CBM VLGCs and place an order through Hyundai Heavy Industries(HHI). The new VLGCs will be included in BGN Group’s LPG transportation contract, which was announced on the same day.
Total Scale of The Contract
The contract period is five years, and the total scale of the contract is KRW 214.4 billion, which is 94.8% of sales in 2020. As the existing charterer of KSS LINE, BGN Group is the world’s No. 1 (based on the possession of LPG volume contract and lump sum charter) LPG trading company.
The new VLGCs, which was signed this time, is designed in a form that can navigate through both the old and the new Panama Canal and loaded with LPG dual fuel propulsion engine (LPG/Fuel Oil Dual/DF). In addition, its form allows the same loading quantity as existing vessels. As such, the charterer can avoid the demurrage of the new Panama Canal and align with environmental regulations. Furthermore, it has the advantage of securing the highest competitive edge in trading because it can transfer the same amount as existing vessels.
The LPG dual fuel propulsion engine is an eco-friendly that has been prepared for the IMO (International Maritime Organization) greenhouse gas (GHG) regulations as both LPG and heavy/light oil can be used as fuel.
The eco-friendly fuel of LPG has the effect of reducing 80-90% of nitrogen oxide, sulfur oxide, and fine dust, and 13-18% of greenhouse gas compared to Bunker-C fuel, therefore the vessels don’t have to be equipped with sulfur oxide reduction devices (scrubbers) or use low sulfur oil.
Improve The Environment
In addition, it can reduce fuel cost by 5.5% per year compared to Bunker-C fuel, expecting to improve the environment and be effective for the economy.
KSS LINE is leading the sustainable energy supply by transporting LPG, which is attracting attention as eco-friendly energy, and advancing the international eco-friendly trend by actively enforcing existing international regulations, such as scrubber/BWTS installation and participation in marine waste recycling (upcycling) campaigns.
Continue To Grow Steadily
Furthermore, KSS LINE will continue to grow steadily by establishing a large vessel fleet of 16(Sixteen) VLGCs, 3(Three) MGCs, and 2(Two) MR TANKERs when it receives the delivery of 2(Two) new vessels in 2023 through this contract following the 5 this year and the 2 in 2022.
Meanwhile, the company is expected to reach its highest record of more than KRW 310 billion and operating profit of KRW 62 billion following the acquiring of five new eco-friendly VLGCs equipped with scrubbers this year.
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