Capitalizing on the sustained positive momentum in the new shipbuilding market, South Korean shipping company Pan Ocean continues to expand its fleet of Very Large Crude Carriers (VLCCs); with this latest move, the company’s total investment in the VLCC market this year has surpassed $1.5 billion.
On June 29, Pan Ocean announced an additional order for two VLCCs from an unnamed shipyard. Scheduled for delivery by September 2030, the total contract value is approximately $244.5 million, translating to a cost of roughly $122 million per vessel.
The company stated that these two additional VLCCs will be built with an “ammonia-ready” design, with the actual installation of ammonia-fuel systems contingent upon future developments in the alternative fuel market.
This marks the second time this year that Pan Ocean has announced an order for ammonia-ready VLCCs. In late March, Beihai Shipbuilding—a subsidiary of China State Shipbuilding Corporation (CSSC)—announced a contract with Pan Ocean to build one ammonia-ready VLCC at a cost of approximately $122 million, with delivery scheduled for the end of 2029. Given the unit price and the ammonia-ready specifications, this additional order for two vessels is likely also being placed with Beihai Shipbuilding.
In 2026, Pan Ocean is simultaneously expanding its VLCC fleet through both newbuild and secondhand vessel acquisitions.
Regarding newbuilds, in addition to the two recently ordered ammonia-ready VLCCs, Pan Ocean announced in May an investment of approximately $525 million to build VLCCs—at a unit cost of about $131 million—with delivery expected in 2031. These vessels are being built by Hanwha Ocean, with the shipbuilding contract publicly disclosed on June 12.
Shortly before this, four VLCCs from Hanwha Ocean secured 20-year charter agreements worth approximately $1.62 billion with SK Energy and SK Incheon Petrochem (both subsidiaries of SK Group) to transport crude oil from the Middle East to South Korea.
Pan Ocean’s current VLCC newbuilding program began in June 2025 with an order placed with HD Hyundai Heavy Industries for two eco-friendly, 300,000 DWT VLCCs at a total cost of $255 million. As of June 29, the shipowner had ordered a total of nine VLCCs, with an aggregate cost approaching $1.15 billion.
Regarding the secondhand vessel market, Pan Ocean announced earlier this year that it would acquire 10 VLCCs from SK Shipping for $668 million—significantly expanding its presence in the crude oil transport sector—with delivery expected by April 11, 2027. This brings the shipowner’s total investment in the VLCC market this year to nearly $1.56 billion.
In addition to its tanker investments, Pan Ocean also placed an order this year with Beihai Shipbuilding for four 211,000 DWT bulk carriers. Including chartered vessels, Pan Ocean currently operates a fleet of over 260 ships, comprising 218 bulk carriers, 19 tankers, 14 LNG carriers, and 12 container ships.