Recently, South Korea’s HJ Heavy Industries (formerly Hanjin Heavy Industries) announced the signing of a construction contract with domestic shipowner H-Line Shipping for an 18,000 cubic meter LNG bunkering vessel. The contract is valued at 122.3 billion KRW (approximately 87.6 million USD or 630 million CNY), with delivery scheduled by December 31, 2027. The contract amount accounts for 6.48% of HJ Heavy Industries’ 2024 operating revenue.
This construction contract was originally signed on February 7 this year but was canceled in May due to adjustments in the shipowner’s business plans. Subsequently, HJ Heavy Industries participated in a reorganized tender in July and secured the status of preferred bidder (priority negotiator), ultimately leading to the signing of this formal contract.
The vessel has an overall length of 144 meters, a beam of 25.2 meters, and a depth of 12.8 meters. It can supply up to 18,000 cubic meters of LNG fuel in a single operation. It will be equipped with two independent LNG pressure tanks certified by the International Maritime Organization (IMO) and feature an advanced dual-fuel (LNG + marine gas oil) propulsion system. This allows the vessel to operate on either LNG or traditional marine diesel, enhancing maneuverability and sailing efficiency while effectively reducing carbon emissions.
LNG-powered vessels typically rely on onshore LNG tanks for fuel supply. Using an LNG bunkering vessel means LNG fuel can be replenished at sea without needing to dock. As such, LNG bunkering vessels are referred to as “floating offshore fueling stations.”
HJ Heavy Industries is the world’s first shipbuilder to secure orders for LNG bunkering vessels. As early as 2014, the company received orders for two 5,100 cubic meter LNG bunkering vessels from Japan’s NYK Line, totaling 100 million USD. These vessels have a total LNG cargo tank capacity of 5,100 cubic meters, are equipped with dual-fuel engines, and measure 107.6 meters in length, 18.4 meters in width, with a gross tonnage of 7,403. After delivery in February 2017, they were deployed at the Port of Zeebrugge in Belgium to provide bunkering services for LNG-fueled vessels operating in Northern Europe.
Following the 5,100 cubic meter LNG bunkering vessels, HJ Heavy Industries developed a 7,500 cubic meter LNG bunkering vessel and obtained Approval in Principle (AiP) certification from Lloyd’s Register (LR) in May 2023.
Notably, to prevent ballast water from disrupting marine ecosystems, the 7,500 cubic meter LNG bunkering vessel developed by HJ Heavy Industries is a “No Ballast Water Ship (NOBS)” that can operate without injecting or discharging ballast water. It does not require additional ballast water treatment systems, making it environmentally friendly while also reducing construction and operating costs. It is regarded as the most advanced and efficient LNG bunkering vessel.
As the world enters the decarbonization era, LNG has gained significant attention as an eco-friendly fuel, and demand for LNG bunkering continues to rise. Singapore-based marine fuel supplier TotalEnergies Marine Fuels predicts that global LNG bunkering demand will increase from 400,000 tons in 2017 to 10 million tons by 2025.
Industry insiders in South Korea noted that with this 18,000 cubic meter LNG bunkering vessel order, HJ Heavy Industries is returning to the LNG bunkering vessel construction market after an 11-year hiatus, further solidifying its position in this sector.
In 2024, HJ Heavy Industries secured orders totaling 4.69 trillion KRW (approximately 23.5 billion CNY), setting a record high since its establishment. Among these, the merchant and special vessel (naval ship) business segment accounted for 1.75 trillion KRW (approximately 9.2 billion CNY) in orders, marking a 150% increase compared to 2022 and a 300% increase over 2023. That year, the company achieved operating revenue of 1.886 trillion KRW (approximately 9.9 billion CNY), operating profit of 7.3 billion KRW (approximately 38.38 million CNY), and net profit of 5.2 billion KRW (approximately 27.34 million CNY).
In the first quarter of this year, HJ Heavy Industries reported operating revenue of 410 billion KRW (approximately 2.05 billion CNY) and operating profit of 5.4 billion KRW (approximately 26.94 million CNY).
