Hyundai LNG Shipping, the shipowning arm of South Korea’s Hyundai Group, has gone on a gas carrier building spree, ordering three 174,000-m3 LNG carriers and two 86,000-m3 LPG very large gas carriers, according to a leading shipping consultancy
Hyundai LNG Shipping has reportedly ordered three LNG carriers at a cost of US$568.2M from Hyundai Heavy Industries to lift cargoes from the Shell-backed Canadian LNG megaproject LNG Canada, according to BRL Weekly Newbuilding.
With the first LNG cargo shipments from LNG Canada due in mid-2025, the three LNG carriers will be built at Hyundai Samho Heavy Industries (HSHI), with deliveries into 2024. BRL reports Hyundai overcame strong competition from China’s Hudong-Zhonghua Shipbuilding. The contract contains options for three more ships that are “likely to be exercised.” Each LNG carrier will have a length overall of 299 m, beam of 46.4 m, depth of 26.5 m and draught of 12.5 m.
Malaysia state oil and gas company Petronas – one of the largest LNG producers in the world – has signed charters to supply LNG to Vitol over a 15-year period. Petronas holds a 25% interest in US$32Bn LNG Canada, with the remaining stakes held by Shell Canada Energy, a subsidiary of Royal Dutch Shell (40%); PetroChina Canada Ltd (15%), Diamond LNG Canada Ltd (15%), a subsidiary of Mitsubishi Corporation and Kogas Canada LNG Ltd (5%).
LPG gas carriers order
BRL reports that Hyundai LNG Shipping has dived into the booming LPG gas newbuild market, ordering two 86,000 m3 very large gas carriers (VLGCs) from HSHI for delivery in 2023. Ordered for US$79M apiece, the vessels are expected to go on long-term charters with South Korea utility company E1.
“The march of LPG currently knows no bounds,” notes BRL Newbuilding Weekly. It reports that Singapore shipowner Eastern Pacific Shipping (EPS) has taken over two options originally held by China’s Zhejiang Satellite Petrochemical (ZSP) for two 96,040-m3 LPG ethane carriers at Hyundai. EPS will charter the two VLGCs over 15 years to ZSP, which had a problem raising finance, reports BRL.
Swiss-based Geogas Trading ordered two 40,000-m3 LPG carriers from Hyundai Mipo for delivery in 2023, with a sister vessel for Greek owner Brave Maritime. The trio is priced at US$53.7M apiece.
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