On May 4, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced that it had signed a contract with South Korea’s KSS Line to build three 90,000 cubic meter LPG carriers. The contract is valued at 504.8 billion won ($342 million), equating to a construction cost of $114 million per vessel.
The newly ordered VLGCs will be built by HD Hyundai Heavy Industries and are scheduled for delivery in the second half of 2029.
The company noted that long-term charter contracts for these new vessels have been signed with global energy companies, with two vessels chartered by BGN Group and the third chartered to GYXIS Corporation.
KSS Line stated, “Following the early renewal of six VLGC time charter contracts with BGN Group in January, the company has further solidified its strategic partnership with BGN Group by finalizing long-term charter agreements for two newbuilds.”
The charter agreements for the two newbuilds with BGN Group have a term of seven years and a total value of approximately 514.3 billion won.
As for GYXIS Corporation, the charter contract has a term of five years and is valued at approximately 185.2 billion won. KSS stated: “Despite the recent slowdown in global economic growth and increased external uncertainties, the company will continue to enhance the competitiveness of its gas carrier business through sustained investment in vessels and stable fleet operations.”
Including this contract, HD KSOE has secured orders for a total of 86 vessels so far this year, with a total value of $9.35 billion, achieving 40.1% of its annual target of $23.31 billion.
By vessel type, the orders include 12 liquefied natural gas (LNG) carriers, 20 container ships, 18 liquefied petroleum gas (LPG) and ammonia carriers, 7 crude oil tankers, 20 petrochemical product carriers (PC tankers), 2 pure car and truck carriers (PCTCs), and 1 other vessel type.