HD KSOE secures $230.5 million gas carrier deal for European shipper

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) inked a contract with a European shipping company for two very large gas carriers (VLGC) at 303.2 billion won ($230.5 million), marking the first contract of the year 2024.

A VLGC vessel built by HD Hyunda Heavy Industries under sea trial [HD HYUNDAI]

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) inked a contract with a European shipping company for two very large gas carriers (VLGC) at 303.2 billion won ($230.5 million), marking the first contract of the year 2024.

The 88,000-cubic-meter vessels, a type of liquefied petroleum gas (LPG) carrier, are 230 meters (754 feet) in length, 32.25 meters in width and 23.85 meters in height. They will be constructed at Ulsan HD Hyundai Heavy Industries, with sequential delivery scheduled by the first half of 2027, according to the company.

"We secured contracts for 60 percent of the 39 LPG and ammonia carriers ordered last year, totaling 23 vessels," an HD KSOE official said. "We anticipate a continued demand for gas carriers this year."

HD KSOE, HD Hyundai's intermediate shipbuilding holding company, lowered its annual order target for 2024 to $13.5 billion, a 14 percent decrease from the previous year.

The $13.5 billion figure represents 60 percent of the total orders of $22.32 billion achieved last year.

The company said that the decision to lower the order target is aligned with its focus on "prioritizing selective orders for high-value vessel types."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]