Since the beginning of this year, DH Shipbuilding (formerly Daehan Shipbuilding), a medium-sized South Korean shipyard that has swept the Suezmax tanker order market, has now officially begun to enter the Very Large Gas Carrier (VLGC) market.
During the recently held Posidonia 2026 international maritime exhibition in Greece, the 88,000 cubic meter class VLGC conceptual design developed by DH Shipbuilding received Approval in Principle (AIP) certificates from Lloyd’s Register (LR) and the Korean Register (KR), respectively.
Previously, DH Shipbuilding mainly performed prominently in the tanker sector, especially since the beginning of this year, when the company almost monopolized all newly signed global Suezmax tanker orders, thus attracting significant attention. In the first quarter alone, DH Shipbuilding secured 12 Suezmax tankers, with a total contract value of approximately USD 1.085 billion, exceeding its annual order target of 11 vessels worth USD 1.03 billion. By early June, the company had accumulated orders for 15 Suezmax tankers since the start of the year, amounting to USD 1.363 billion (approximately RMB 9.2 billion). Currently, DH Shipbuilding’s order backlog has increased to 38 vessels, with an order coverage ratio exceeding 3.5 years.
Currently, the company is expanding its product portfolio into high value-added ship sectors based on its long-accumulated tanker construction technology, with VLGC being a key area of focus.
Analysis from the South Korean industry suggests that VLAC remains one of the most watched ship types in the newbuilding market. As of 2025, the global VLGC fleet comprises 406 vessels, with an average age of about 10 years, but 15% of the ships are over 20 years old, facing pressure from environmental regulations such as the Carbon Intensity Indicator (CII) and the EU Emissions Trading System (EU ETS).
Norwegian consultancy Rystad Energy estimates that by the mid-2030s, clean ammonia trade volume will reach 76 million tons, four times the trade volume in 2020. The company states that by 2050, annual ammonia exports will exceed 120 million tons, with the majority coming from Africa and North America.
South Korean industry insiders indicate that against this backdrop, the outlook for VLAC orders is also optimistic. It is estimated that by 2035, the total number of global liquid ammonia carrier orders will be between 150 and 200 vessels, requiring an average of about 20 vessels per year. Previously, the three major South Korean shipbuilders have all made significant achievements in the VLGC field and have been very active in this market since the beginning of this year. Since entering the second quarter of this year, HD Korea Shipbuilding & Offshore Engineering has accumulated a total of 29 VLAC orders. Samsung Heavy Industries, which had been absent from the VLAC market for 15 months, also secured 2 VLGCs in early April. Hanwha Ocean has also secured 3 VLACs since the beginning of this year.
The South Korean industry states that compared to LNG carriers, the technical barriers for VLGCs are relatively lower, but their construction difficulty is higher than that of tankers. Therefore, DH Shipbuilding has chosen to enter this new shipbuilding market.
Additionally, during this maritime exhibition, DH Shipbuilding signed a Joint Development Project (JDP) agreement with British environmental technology company Armada and Lloyd’s Register (LR) regarding the “Passive Air Lubrication System (PALS) Arrangement Study.” Air lubrication systems are technologies that improve energy efficiency by injecting bubbles into the bottom of the hull to reduce frictional resistance between the hull and seawater. Notably, the Armada passive system under this study differs from traditional methods as it can operate without a compressor, thereby further improving fuel efficiency. This technology is considered one of the important solutions for responding to the International Maritime Organization (IMO) carbon emission regulations due to its contribution to reducing greenhouse gas emissions.
Lee Sang-cheol, Head of the Technology Division at DH Shipbuilding, stated: “Obtaining the Approval in Principle for the 88,000 cubic meter class VLGC conceptual design and carrying out environmental technology cooperation are important opportunities for the company to diversify its technology portfolio in response to market changes. The company will lead the development and changes in the future eco-friendly ship market through collaboration with global partners.”
