HD Korea Shipbuilding & Offshore Engineering Wins Order for 4 Medium-sized Gas Carriers Worth 389.9 Billion KRW

Low-Carbon Ammonia Fuel Usable
Raw Material Company Trafigura Places Order

HD Korea Shipbuilding & Offshore announced on the 2nd that it has recently signed a contract to build four medium-sized gas carriers (MGC). The total order amount is 389.9 billion KRW.

The vessels will be constructed at HD Hyundai Mipo and are scheduled for delivery by November 2027.

Regarding this order, foreign media reported a statement from the global commodity trading company Trafigura, stating that the ships ordered by Trafigura will be capable of using ammonia as fuel.

These four vessels will be equipped with dual-fuel engines that can use ammonia, which has low carbon emissions, as fuel, and will transport liquefied natural gas (LNG) or ammonia. Ammonia is considered one of the candidates for low-carbon alternative fuels for ships.

The sea trial of the LPG carrier built and delivered by HD Hyundai Heavy Industries in 2022 [Photo provided by HD Korea Shipbuilding & Offshore Engineering]

Trafigura aims to reduce the carbon intensity of its fleet by 25% by 2030. The company operates about 400 cargo ships, navigating more than 5,000 voyages annually.

Including this order, HD Korea Shipbuilding & Offshore has secured a total of 94 vessels (including one offshore facility) worth 10.6 billion USD (approximately 14.6 trillion KRW) to date. This tentatively achieves 78.5% of the annual order target of 13.5 billion USD (approximately 18.6 trillion KRW).

By vessel type, the orders include 6 LNG carriers, 32 petrochemical product carriers (PC vessels), 36 liquefied petroleum gas (LPG) and ammonia carriers, 1 ethane carrier, 2 liquefied carbon dioxide carriers, 6 very large crude carriers (VLCC), 3 tankers, 2 pure car and truck carriers (PCTC), 1 floating storage and regasification unit (FSRU), 1 offshore facility, and 4 special-purpose vessels.