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Nor-Shipping: Hyundai Heavy Industries and KR to develop 'next-generation' VLEC
HD Hyundai Heavy Industries (HHI) and Korean Register (KR) have signed a memorandum of understanding to jointly develop a very large ethane carrier (VLEC)
A new VLEC design set to be developed under a partnership between South Korean classification society Korean Register and South Korean shipyard HD HHI will have a cargo capacity exceeding 100,000-m³.
"It will be designed to maximise cargo volume while minimising changes to the main specifications of conventional vessel designs. Additionally, the vessel will be capable of transporting a variety of cargoes, such as LPG and propylene, enhancing operational flexibility and market responsiveness for shipowners," the project’s joint participants said.
HHI will take the lead in the vessel’s overall design and hull design and KR will review the safety and regulatory compliance of the design in accordance with its latest structural rules for gas carriers and international standards, with the aim of granting an approval in principle for the design’s construction.
"Through the development of this next-generation vessel, capable of transporting more cargo under the same conditions, we will once again demonstrate HHI’s technological leadership in the global ethane transport market. Ultimately, we aim to deliver a sustainable solution that enhances both profitability and environmental performance for our customers," HHI executive vice president and chief technology officer Ryu Hong-Ryul said.
KR chairman and chief executive Lee Hyungchul called the agreement to develop a new VLEC design "a meaningful starting point in the development of next-generation ethane carriers".
Owners continue to show a strong appetite for ethane carrier newbuilds, with the latest order placed by an undisclosed Asian owner at South Korea’s HD Korea Shipbuilding & Offshore Engineering. According to an exchange filing, the value of the two-ship contract was Krw459Bn (US$317M), with delivery by December 2028.
This follows Mitsui OSK Lines (MOL)’s announcement in January detailing MOL Energia’s long-term charter agreement for three VLECs with SCG Chemicals, a wholly owned subsidiary of Thailand’s Siam Cement Group.
The three newbuild 100,000-m3 VLECs will be constructed at the Geoje shipyard of South Korea’s Samsung Heavy Industries, with delivery earmarked for 2027. MOL reports the VLECs will be equipped with dual-fuel ethane propulsion engines, which will reduce greenhouse gas, sulphur oxide, and nitrogen oxide emissions compared with conventional vessels that operate on HFO.
The VLECs will have an overall length of 230 m, beam of 37 m and draught of 12 m, with GTT Mark III membrane containment systems, which will allow the VLECs to trade various types of liquefied gases such as ethane, ethylene, propane, butane, LPG and propylene.
As a result of this contract, the MOL group will manage and operate 12 out of the approximately 90 VLECs in the global fleet that have been delivered or are on order.
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