Nearly Half of Liquefied Gas Vessel Orders! South Korea Shipbuilding and Ocean Industry Secures 2 LPG Vessel Orders Again
On November 23, HD Hyundai (formerly Hyundai Heavy Industries) Shipbuilding Holdings announced that it has signed construction contracts for 2 LPG ships with shipowners in Africa, with a total contract value of KRW 185.3 billion (approximately USD 143 million). These 2 LPG ships will be built at Hyundai Mipo Dockyard in Ulsan and are planned to be delivered before December 2026.
HD Hyundai Shipbuilding Holdings did not disclose further details of the transaction, but based on the cost of building these 2 LPG ships and the shipyard where they will be built, it is estimated that they are medium-sized LPG ships with a capacity of 46,000 cubic meters.
As a subsidiary of HD Hyundai, Hyundai Mipo Dockyard mainly builds various types of medium-sized vessels, with particular strength in the construction of medium-sized ships, especially medium-sized LPG ships, which were listed as "world-class products" in Korea many years ago. It ranks first in shipbuilding performance in the global shipyard, leading the market for these types of ships.
It is reported that Hyundai Mipo Dockyard plans to complete and deliver 68 new ships this year, an increase of 15 ships compared to last year, with 21 of them being LPG ships.
These 2 LPG ships are also the second batch of liquefied gas ship orders accepted by HD Hyundai Shipbuilding Holdings within a week. On November 17, HD Hyundai Shipbuilding Holdings announced that it has signed construction contracts for 2 98,000 cubic meters ultra large ethane carriers (VLEC) with shipowners in Asia, with a total contract value of KRW 444.4 billion (approximately USD 340 million). These ships will be built at Hyundai Heavy Industries' shipyard in Ulsan and are planned to be delivered in the first half of 2028.
Including the 2 LPG ships contracted this time, HD Hyundai Shipbuilding Holdings has received orders for 151 ships (seats) for marine equipment since the beginning of this year, with a total contract value of USD 21.37 billion, achieving about 135.8% of its annual order target of USD 15.74 billion. Among them, there are already 73 liquefied gas ships, accounting for over 48% of the total number of ships, including 39 LNG carriers, 30 LPG/ammonia carriers, 2 liquefied carbon dioxide carriers, and 2 ethane carriers.
In addition to liquefied gas ship orders, HD Hyundai Shipbuilding Holdings has also received orders for other ship types this year, including 37 oil tankers, 29 container ships, 7 crude oil carriers, 4 car carriers, and 1 floating production unit (FPU).
Industry insiders in Korea have stated that the strong performance of HD Hyundai Shipbuilding Holdings in the liquefied gas ship market proves that it has decent differentiation and competitiveness in this field.
According to industry analysts, the number of medium-sized LPG ships with an age of over 15 years, ranging from 20,000 to 45,000 cubic meters, has reached 62 in 2023 and is expected to reach 77 in 2024, showing an increasing trend year by year. Therefore, as the number of aged medium-sized LPG ships continues to increase, the new ship order market for this type of ship is poised for growth, and Hyundai Mipo Dockyard will seize the opportunity to expand its market share in the construction market for these ships.
HD Hyundai Shipbuilding Holdings said, "Including the recently accepted orders for VLEC and LPG ships, the company is continuously expanding its range of liquefied gas ship orders. Based on accumulated construction experience, the company will accelerate the development of future green ships and related technologies, leading the market for new generation liquefied gas ships such as hydrogen transport ships."
With its strong performance in the liquefied gas ship market, HD Hyundai Shipbuilding Holdings' total order amount for this year is approaching USD 22.8 billion in 2021 and USD 23.95 billion in 2022. It is quite intriguing to see whether HD Hyundai Shipbuilding Holdings can secure more large-scale orders in the remaining month and set new order records.
