Mini-boom in LPG/ammonia carriers; weekly LPG freight rates slip

Purus orders third VLEC from HHI

Purus, an Itochu of Japan company, has added a third 98,000-m³ very large ethane carrier (VLEC) to its current order at Hyundai Heavy Industries in South Korea.

The vessel will feature dual-fuel ethane engines and optimised cargo handling systems, enabling lower CO2 and SOx emissions, according to Purus. Additional energy-saving devices will further contribute to emissions reductions.

The vessel will be delivered in 2027 directly into a long-term time charter.

Purus has four 180,000-m³ LNG carriers on order from Samsung Heavy Industries, with the first due for delivery in 2024.

In addition, the company has four 45,000-m³ medium gas carriers on order at Hyundai Mipo. Listed as ammonia dual-fuel ready, the first is due for delivery in 2025.

Purus has three conventionally powered medium-sized (40,000-m³) LPG/ammonia carriers, Marcella, Green Power and Green Energy, in the water. All three are equipped with Erma First Fit 1000 ballast water treatment systems.

Mini-boom in LPG/ammonia carrier orders

54 very large LPG/ammonia carriers are on order, reported BRL Weekly Newbuilding Contracts, showing the increasing demand for ammonia as a major fuel in the years ahead is a driving force in the gas carrier orderbook.

Greek owners continue to be very active with two more LPG/ammonia 93,000-m³ carriers booked by Greece-domiciled Alpha Gas, lifting its current commitment to four units. The LPG/ammonia carriers will be built by Hanwha Ocean at a total cost of US$125M each, according to BRL.

The same owner recently ordered two units from rival Hyundai, which also won three more LPG/ammonia carrier orders from Japan’s NYK Line. The NYK Line vessels are 88,000-m³ units, with delivery expected in 2027 and 2028 for a reported US$122M each.

VLGC freight rate slip

Platts, part of S&P Global Commodity Insights, has assessed VLGC freight rates from Houston to northwest Europe at US$56/tonne for the week ending 25 January 2025.

This is down US$5/tonne and freight rates on the route to Morocco dropped to US$52.75/tonne, some US$4.75/tonne lower.

Freight rates from Houston to Japan were assessed at US$92/tonne, down US$8/tonne.