On May 8, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a subsidiary of HD Hyundai, signed a contract with an Oceania-based shipowner for the construction of two Very Large Gas Carriers (VLGCs). The total value of the order is 352.1 billion won (approximately $240 million). Each vessel is valued at approximately $120 million. The newbuilds will be constructed by HD Hyundai Heavy Industries and are expected to be delivered in the first half of 2029.
This batch of VLGCs will be equipped with environmentally friendly dual-fuel engines that run primarily on liquefied petroleum gas (LPG), with the aim of improving fuel efficiency and complying with increasingly stringent environmental regulations.
According to market sources, this order for gas carriers is linked to TMS Cardiff Gas, a Greek shipping company owned by George Economou.
Historically, George Economou has typically commissioned South Korean shipyards to build liquefied gas carriers, while entrusting the construction of bulk carriers, oil tankers, and container ships primarily to Chinese shipyards.
As one of Greece’s largest liquefied gas carrier operators, the shipowner is continuing to expand through an aggressive newbuilding program covering both LNG and LPG vessel types, and currently operates a fleet of 24 vessels.
Earlier this year, TMS Cardiff Gas attracted significant market attention by placing an order with China State Shipbuilding Corporation’s Hudong-Zhonghua Shipbuilding for up to six 174,000 m³ LNG carriers, a contract that successfully opened the door for Hudong-Zhonghua to the European market.
As of May 8, HD KSOE has secured orders for 94 new vessels this year, valued at $10.81 billion, achieving 46.4% of its annual order target of $23.31 billion.
By vessel type, the orders include 12 LNG carriers, 26 container ships, 20 LPG carriers, 7 crude oil tankers, 26 product tankers, 2 car carriers, and 1 icebreaker.
An HD KSOE official stated, “As environmental regulations become increasingly stringent and the global fleet’s need for renewal continues to grow, orders for eco-friendly, high-value-added vessels are steadily coming in.”
In the market for large gas carriers, construction activity remains robust despite rising newbuilding costs. In addition to the numerous orders announced this year, an increasing number of shipowners are expressing interest in building new vessels and have entered into advanced negotiations with shipyards, including new entrants such as Turkey’s Ciner Group.
