On January 5, Korea Shipbuilding & Offshore Engineering Co., Ltd.(HD KSOE) announced that it has signed a contract with an European shipowner for the construction of two 88,000 m3 very large liquefied petroleum gas carriers (VLGCs), with an order value of KRW 303.2 billion (approx. USD 231), which are expected to be delivered in the first half of 2027, in order of delivery.
This series of VLGCs is 230 meters in length, 32.25 meters in breadth and 23.85 meters in height, and will be built by HD Hyundai Heavy Industries Ulsan Shipyard. This is the first order taken by HD Hyundai Group in 2024, officially kicking off the order book of 2024.
According to data, the global newbuilding market ordered a total of 39 VLGCs and Very Large Liquid Ammonia Carriers (VLACs) in 2023, of which 23 were bagged by HD KSOE, accounting for 60%.
A source from HD KSOE said, “Demand in the global liquefied gas carrier market is expected to continue in 2024. The company will secure an absolute technological gap unmatched by competing companies through continuous research and development.”
Earlier this week, HD Korea Shipbuilding & Marine set its order target for 2024 at $13.5 billion, significantly lower than the $15.73 billion order target set in 2023 and the actual order value of $22.3 billion, signaling that the company plans to continue to pursue its order-screening strategy to underwrite high value-added vessels while securing its workload for at least the next three years.
The three shipbuilding subsidiaries of HD Hyundai Group, HD Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Hyundai Mipo Shipbuilding, have set 2024 merchant ship order targets of $5.2 billion, $3.2 billion, and $3.1 billion, respectively.
It is worth noting that in the field of specialty ship types, HD Hyundai Heavy Industries has received only $138 million in orders in 2023, while the company has set an order target of $988 million in 2024 in this field. This means that HD Hyundai Heavy Industries will be storing up a charge in the field of specialty ship types this year.
With the growth of the liquefied petroleum gas (LPG) carrier market and the need to transport next-generation energy ammonia, HD KSOE will focus on ship types such as VLGC/VLAC, according to the Korean industry in 2024.