Hyundai Glovis unveils new LPG/ammonia carrier for charter with Trafigura

Hyundai Glovis, the logistics unit of South Korean Hyundai Motor Group, has unveiled and named its newbuild very large gas carrier (VLGC) for LPG and/or ammonia transport which will go on a long-term charter with Swiss commodity trading company Trafigura.

The naming ceremony took place at the Hyundai Samho Heavy Industries shipyard in Yeongam, Jeollanam-do, South Korea, on March 26.

The vessel, named Taebaek Explorer, is the first of two newbuild VLGCs which will be chartered by Trafigura on a long-term basis under agreement signed in 2021.

The second vessel of the same type, the Sobaek Explorer, is expected to be launched in mid-2024.

The newbuilds will have an 86,000 cubic meter capacity for LPG and/or ammonia and will be equipped with LPG dual-fuel engines and shaft generators for optimized fuel consumption and reduced CO2 emissions.

According to Trafigura, the VLGCs will also play a key role in expanding the company’s ammonia-carrying capacity, facilitating the transportation of both blue and green ammonia globally, and supporting the development of a global ammonia bunkering infrastructure network.

Speaking at the naming ceremony, Trafigura’s Head of Oil Chartering, Andrea Olivi, highlighted the strategic importance of shipping in Trafigura’s business model and the ongoing efforts to maintain a modern fleet and invest in energy-efficient technologies, lower-carbon fuels, and decarbonization initiatives.

To this end, the commodity trading giant has set an ambitious target of having at least six zero-emission green ammonia-fuelled vessels in its fleet by 2030 to achieve a 25% reduction in the greenhouse gas (GHG) intensity of its shipping operations.

These six ships would represent approximately 18% of Trafigura’s currently owned fleet.