Korea Shipbuilding & Offshore Engineering Secures Order for Three Ultra-Large LPG Carriers Worth 391.7 Billion KRW

Built by Hyundai Heavy Industries, 88,000㎥ Class Ship Passable Through Old Panama Canal, the Largest Size
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A sea trial of an 84,000㎥ class ultra-large LPG carrier built by Hyundai Heavy Industries. Photo by Korea Shipbuilding & Offshore Engineering

[Asia Economy Reporter Choi Seoyoon] Korea Shipbuilding & Offshore Engineering, the intermediate holding company for shipbuilding under Hyundai Heavy Industries Group, has succeeded in securing orders for three ultra-large LPG carriers worth a total of 391.7 billion KRW.

Korea Shipbuilding & Offshore Engineering announced on the 5th that it recently signed a construction contract with a Liberia-based shipping company for three large LPG carriers with a capacity of 88,000㎥ each. The contract includes options for two additional vessels, raising expectations for further orders.

The newly ordered ships measure 230m in length, 32.25m in width, and 23.85m in height, and will be built at Hyundai Heavy Industries in Ulsan, scheduled for sequential delivery to the shipowner starting in the second half of 2024.

Notably, these vessels are constructed with a maximum cargo capacity increased by 2,000㎥ from previous models, totaling 88,000㎥, making them the largest size capable of passing through the Old Panama Canal.

Recently, shipowners have preferred vessels that can transit the Old Panama Canal to avoid congestion and increased tolls at the New Panama Canal. Korea Shipbuilding & Offshore Engineering is the only company worldwide with a track record of building ultra-large LPG carriers capable of transiting the Old Panama Canal.

The ordered LPG carriers are equipped with LPG dual-fuel propulsion engines, enabling compliance with the International Maritime Organization (IMO)'s strengthened sulfur oxide emission regulations without the need for scrubbers, which are exhaust gas reduction devices. Additionally, an ammonia cargo option is applied, allowing for the transport of ammonia, which is gaining attention as an eco-friendly energy source.

Meanwhile, on the 29th of last month, Korea Shipbuilding & Offshore Engineering also secured orders for two medium-sized LPG carriers of 45,000㎥ each from a European shipping company. According to Clarkson Research, a shipbuilding and shipping market analysis firm, global maritime LPG transport volume is expected to reach 117 million tons this year and is projected to increase by over 3% to 121 million tons in 2023.

A representative from Korea Shipbuilding & Offshore Engineering stated, "Inquiries for LPG carriers have been increasing recently, and we expect the market, which had been somewhat sluggish in orders, to rebound. We will enhance customer satisfaction based on our advanced technology and extensive construction experience."

This content was produced with the assistance of AI translation services.