South Korean shipyard bags $370 million contract to build 4 LNG bunker vessels

South Korean shipbuilder HD Hyundai Mipo has secured a new order worth KRW 514.8 billion (around $370 million) for the construction of four LNG bunkering vessels.

The shipbuilding contract was revealed in HD Hyundai Mipo’s stock exchange filing on November 7, 2024.

The deal includes the construction of four 18,000 cubic meter (cbm) LNG bunkering vessels scheduled to be delivered by the end of October 2028 to an undisclosed shipping company in Asia.

While the shipbuilder did not disclose the name of the shipowner, market rumors indicate that Singapore’s Eastern Pacific Shipping (EPS) and Swiss major MSC Mediterranean Shipping Company have jointly ordered these four bunkering vessels.

Offshore Energy has reached out to the shipping companies and is yet to receive a response.

The latest order underpins the ongoing rise in the number of LNG-fueled ships. According to the industry coalition SEA-LNG, over 2,000 of the world’s 60,000 largest vessels will be powered by LNG in the near future with active LNG-fueled vessels now representing over 2% of the global shipping fleet.

In support of this expansion, LNG bunkers are currently available in 185 ports, with an additional 50 being added next year. The bunkering vessel fleet has increased from a single vessel in 2010 to 60 in operation today, with a further 13 on order and significant interest in the maritime community to continue to invest in these assets.

Just recently, MSC signed a deal with Chinese Jiangsu Rongsheng Heavy Industries for the construction of up to twelve new LNG dual-fuel containerships. The price tag for the 12,000 TEU vessels is believed to be $170 million each, bringing the cumulative value of the deal to more than $2 billion.

The shipowner also has 18 LNG-powered 19,000 TEU and 11,500 TEU containerships on order at two Chinese yards, Shanghai Waigaoqiao Shipbuilding (SWS) and Penglai Jinglu. The ships are slated for delivery between 2027 and 2028.