KSOE piles up newbuild orders with new VLGC deal

South Korean shipping major Korea Shipbuilding & Offshore Engineering Co. (KSOE) has signed a deal to construct two very large gas carriers for an undisclosed shipowner.

According to the company’s stock exchange filing, the ships will be constructed by KSOE’s unit Hyundai Samho Heavy Industries.

The KRW 255.4 billion (US$197.1 million) order was placed by a shipowner located in the Middle East.

The company plans to deliver the LPG carriers by January 2026.

The order comes a week after the company revealed it will build two LPG carriers for an unnamed shipowner from Oceania.

KSOE has three subsidiaries under its wing, Hyundai Heavy Industries (HHI), Hyundai Mipo Dockyard (HMD) and Hyundai Samho Heavy Industries.

Only this year, the South Korean shipbuilder has scored $5.08 billion in orders to construct 36 vessels or 32.3 percent of its yearly target of $15.74 billion.

In 2022, KSOE won $24.0 billion (197 vessels) worth of orders, 38 percent more than its target ($17.4 billion).

Compared to coal, liquefied petroleum gas is a cleaner fuel. Consequently, The demand for LPG tankers is likely to rise as the usage of LPG spreads beyond domestic to industrial and commercial applications.