"LNG Transportation Know-How Extends to Hydrogen" Hyundai Glovis Partners with Australian Energy Company

Hyundai Glovis Enters LNG Shipping, Signs Long-Term Contract with Australia's Largest Energy Company

Hyundai Glovis' newbuild LNG carrier identical to the planned vessel

[Asia Economy Reporter Choi Dae-yeol] Hyundai Glovis has signed a long-term liquefied natural gas (LNG) transportation contract with Australian energy company Woodside. LNG transportation is a field with high entry barriers, and the shipping business portfolio, which has been centered on automobile carriers, has been expanded to include gas. It is expected to accumulate know-how in the hydrogen supply chain, which is expected to grow in the future market.

On the 12th, Hyundai Glovis CEO Kim Jeong-hoon and Woodside CEO Meg O'Neill signed an LNG transportation contract for up to 15 years (basic 10 years with a 5-year extension option). Woodside is Australia's largest LNG producer, and this is the first time it has signed a transportation contract with an Asian shipping company. As an energy company mainly engaged in resource development including LNG, it accounts for about 5% of the world's LNG supply. Australia is the world's largest LNG exporting country.

Hyundai Glovis recently placed an order for LNG vessels in line with this contract. The ships will be delivered in the second half of 2024. They plan to transport LNG produced in Australia to the world. Initially, LNG demand was high mainly in Northeast Asia, including South Korea, China, and Japan. In recent years, demand has surged worldwide, rapidly expanding the transportation market. As we enter the decarbonization era, LNG is gaining attention as an intermediate fuel bridging traditional fossil fuels like coal and oil with hydrogen and renewable energy. According to a report by Morgan Stanley last year, LNG demand is expected to increase by about 25-50% by 2030.

Hydrogen, considered the next-generation energy source, is also expected to see increased domestic and international demand and supply. Hyundai Glovis views this contract as an opportunity to accumulate know-how in advance. Woodside is also participating in green energy development projects led by the Australian government. There is a high possibility of collaboration in hydrogen maritime transportation in the future. Woodside is the only overseas hydrogen supplier to have invested in the domestic hydrogen infrastructure consortium Hynet (Hydrogen Energy Network). The industry expects Woodside to become the top priority supply chain when hydrogen is introduced domestically.

Hyundai Glovis also signed a contract last year with Swiss trading company Trafigura, ranked among the world's top three raw material trading firms, to start maritime transportation of ammonia and liquefied petroleum gas (LPG) from 2024. A company official said, "In the era of energy transition, we will play an important role as a global shipping company," adding, "We will demonstrate global competitiveness not only in the automobile carrier market but also in the gas maritime transportation sector."

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