South Korean shipowner nudges up its fast-expanding LNG fleet

 

South Korea’s Hyundai LNG Shipping has added another newbuilding to its growing fleet by inking a contract for

 

an LNG carrier at Daewoo Shipbuilding & Marine Engineering after securing a second long-term charter deal from Spain’s Repsol.

 

This week, DSME said it had won a KRW 227.8bn ($197.7mn) order for an LNG carrier from an Asia-based shipowner without naming the contracting party.

 

The yard said the vessel is scheduled for delivery by the end of May 2024.

 

Those following the business said the 174,000-cbm ship is an option held by Hyundai LNG.

 

The option was linked to a single LNG newbuilding order that the South Korean shipowner placed in May after scooping charter business from

 

Repsol in a battle with Norway’s Knutsen OAS Shipping.

 

Price rise

 

This first newbuilding, which delivers in the fourth quarter of 2023, was priced at KRW 216.9bn ($195.8m).

 

The more expensive option indicates the pressure yards have been under to hike prices in response to steel plate price rises.

 

The ships will be fitted with ME-GI propulsion and reliquefaction systems.

 

Repsol said this week it has secured two LNG carriers from Hyundai LNG taking the ships on charter for 10 years with options to extend the hire.

 

The ships will primarily be used to lift the company’s US LNG volumes.

 

Repsol is buying one million tonnes per annum of product over a 20-year period from Venture Global LNG’s Calcasieu Pass project, with shipments due to start in 2022.

 

The Spanish utility is also taking on LNG from compatriot Naturgy, which is buying LNG from US producer Cheniere Energy.

 

Repsol is also planning to extend its trading activities on LNG.

 

This latest order from IMM Private Equity-controlled Hyundai LNG comes after the owner doubled the number of LNG newbuildings it is constructing for

 

Petronas against its LNG Canada requirement to six vessels.

 

The shipowner, which was formed seven years ago when Hyundai Merchant Marine sold its LNG business to IMM Private Equity and IMM Investment,

 

now has eight LNG carriers on order comprising the two vessels fixed to Repsol and six for Petronas.

 

The latest additions come amid talk that the company is being fattened up for sale by its lead shareholder.(Copyright)

 

 

LINK : https://www.tradewindsnews.com/gas/hyundai-lng-inks-optional-lng-order-at-dsme-for-spanish-business/2-1-1048065