HMM launches LPG carrier JV with BGN, strengthening market comeback

The shipowner and B-International Shipping and Logistics, a subsidiary of the BGN group, have formed a joint venture named HMMB INT Shipping Pte in Singapore. The signing ceremony was held in Seoul on 5 November.

Equally funded by HMM and B-International Shipping & Logistics, with each holding a 50% stake, the joint venture plans to operate two newbuild VLGCs, each with a capacity of 88,000 m³. The vessels will operate under a 10-year contract, with an option to extend for an additional five years.

The VLGC pair is currently under construction at HD Hyundai Heavy Industries in South Korea, with deliveries scheduled for Q1 2027.

HMM re-enters the LPG market

This deal marks HMM’s renewed presence in the LPG carrier market. The company previously operated five LPG vessels but suspended its operations in 2016. These joint venture newbuilds will complement the three mid-sized LPG carriers HMM acquired earlier this year.

Under its 2030 Mid-to-Long Term Strategy, HMM aims to expand its LPG and ammonia fleet to 20 vessels by 2030.

“This joint venture marks a strategic move to actively respond to growing demand for gas transport and sets the stage for future collaboration in low-carbon and environmentally sustainable energy logistics,” an HMM official said.

BGN handles approximately 14M tonnes of LPG annually and operates a fleet of more than 40 LPG carriers.

“We share a mutual vision to decarbonise the maritime industry and our shipping operations,” said B-Shipping director of shipping Ozan Turgut. “The delivery of these two vessels underlines BGN’s vision to sustainably grow our LPG business.”