HMM, BGN unit form LPG shipping JV

HMM, South Korea’s largest national carrier, has partnered with B International Shipping and Logistics, a part of the Swiss BGN group of companies, to establish a joint venture in Singapore.

As explained, the collaboration aims to expand the scope of liquefied petroleum gas (LPG) transportation operations.

The new joint venture, HMMB INT Shipping, is equally funded by HMM and B International Shipping & Logistics, each holding a 50% stake. The JV plans to operate two very large gas carriers (VLGCs), each with a capacity of 88,000 cbm, under a ten-year contract with the option to extend by another five years.

Both VLGCs are currently under construction at HD Hyundai Heavy Industries (HD HHI) and are scheduled for delivery in the first half of 2027.

BGN Group is a global trading company handling approximately 14 million tons of LPG annually and operating a fleet of over 40 LPG vessels.

HMM previously operated five LPG vessels but suspended business in 2016. Under its 2030 Mid-to-Long Term Strategy, HMM is now reinforcing its bulk business portfolio, with plans to expand its LPG and ammonia fleet to 20 vessels by 2030.

Following the acquisition of three mid-sized LPG vessels this year, this joint venture marks an additional step forward in strengthening HMM’s position in the green energy shipping sector.

“This joint venture marks a strategic move to actively respond to the growing demand for gas transportation and sets the stage for future collaboration in low-carbon and environmentally sustainable energy logistics,” an HMM official stated.

“BGN is pleased to be in partnership with HMM, the national carrier of South Korea, who bring operational excellence and expertise. We share a mutual vision to decarbonize the maritime industry and our shipping operations. The delivery of these two vessels underlines BGN’s vision to sustainably grow our LPG business, expand our global reach, and add value for our customers, as we also contribute to the energy transition,” Ozan Turgut, Director of Shipping, B-Shipping, said.

In other news, B International Shipping & Logistics and Abu Dhabi-based Al Seer Marine, a subsidiary of International Holding Company (IHC), recently launched a joint venture that owns and operates mid-sized LPG and product tankers.

The JV was named ASBI Shipping FZCO, and it acquired two 22,000 cubic meter (cbm) semi-refrigerated LPG tankers, Alkaid and Alcor.