Korea Shipbuilding & Offshore Engineering Secures 2 LPG Carriers Worth 100 Billion KRW

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, has succeeded in securing additional orders for LPG carriers.

Korea Shipbuilding & Offshore Engineering announced on the 3rd that it has signed a construction contract worth 100 billion KRW (2 vessels) for two medium-sized LPG carriers with a capacity of 40,000 cubic meters (㎥) with a Liberia-based shipping company.

The newly ordered vessels are all 180 meters long, 28.4 meters wide, and 18.2 meters high, and will be built at Hyundai Mipo Dockyard in Ulsan and delivered to the shipowner starting from the second half of 2022. Additional orders for vessels of the same type are currently under negotiation, so further orders are expected in the future.

In particular, these vessels have an option to be equipped with LPG dual-fuel propulsion engines, enabling compliance with the strengthened sulfur oxide emission regulations of the International Maritime Organization (IMO) without the need for scrubbers, which are exhaust gas reduction devices.

With this contract, Korea Shipbuilding & Offshore Engineering has secured 16 out of 17 medium-sized LPG carriers ordered worldwide over the past two years since 2019, leading the market with approximately 95% of the global market share.

A representative of Korea Shipbuilding & Offshore Engineering stated, "Marketing focused on technological capabilities and a strong trust relationship with shipowners have led to consecutive orders," adding, "We will further solidify Hyundai Heavy Industries Group's position in the gas carrier market through additional orders by the end of the year."