South Korea’s HMM formed a 50-50 venture with B International Shipping & Logistics, part of the UAE’s BGN Group, marking the container carrier’s return to liquefied petroleum gas shipping after exiting the sector in 2016. The Singapore-based HMMB INT Shipping will operate two 88,000-cubic-meter very large gas carriers currently under construction at HD Hyundai Heavy Industries, with deliveries scheduled for the first half of 2027.
The vessels have already secured a 15-year transportation contract with BGN INT DMCC, the trading arm of BGN Group, providing revenue stability for the partnership. BGN operates approximately 40 LPG vessels and handles around 14 million tons of LPG annually, giving it substantial bargaining power in securing favorable terms.
The deal advances HMM’s diversification beyond container shipping, where the company has faced volatility despite recent strong performance. Under its 2030 strategy, HMM aims to expand its LPG and ammonia fleet to 20 vessels, having already acquired three mid-sized LPG carriers earlier this year.
The LPG shipping market faces headwinds from oversupply concerns and muted trade growth, though demand for specialized gas carriers continues. Newbuild prices for very large ammonia carriers reach $120 million to $125 million, making joint ventures an attractive financing option for carriers seeking to limit capital exposure.
HMM remains majority-owned by state-controlled Korea Development Bank and Korea Ocean Business Corporation following a failed privatization attempt earlier this year. The shipping company has sought to reduce dependence on container operations, where rates remain subject to geopolitical disruptions and capacity imbalances.
