HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE), South Korea’s leading shipbuilder, has announced a new contract with global commodity trading company Trafigura to construct four medium-sized gas carriers (MGCs). The contract, valued at approximately 389.9 billion won ($286 million), marks a significant step towards environmentally sustainable shipping solutions.
These vessels, slated for construction at HD Hyundai Mipo, are expected to be delivered by November 2027. They will feature dual-fuel engines capable of utilizing low-carbon ammonia, aligning with the maritime industry’s shift towards reducing carbon emissions. Ammonia, recognized as a promising low-carbon alternative fuel for ships, will allow these carriers to transport liquefied natural gas (LNG) or ammonia.
This order is part of Trafigura’s broader environmental strategy, aiming to reduce the carbon intensity of its fleet by 25% by 2030. Trafigura operates approximately 400 vessels globally, undertaking over 5,000 voyages annually. The adoption of ammonia-fueled engines in new vessels underscores the company’s commitment to sustainability and innovation in maritime operations.
With this latest contract, HD KSOE has now secured orders for 94 vessels, including one offshore facility, totaling $10.6 billion for the year. This achievement represents 78.5% of the company’s annual target of $13.5 billion. The diverse order book for HD KSOE includes 6 LNG carriers, 32 petrochemical product carriers, 36 LPG/ammonia carriers, and various other specialized vessels, highlighting the company’s broad capabilities and strategic focus on eco-friendly shipping technologies.
This deal not only enhances HD KSOE’s portfolio in green shipbuilding but also positions the company at the forefront of the industry’s transition towards more sustainable fuel alternatives, like ammonia, in the global effort to combat maritime emissions.
