Hyundai Glovis, Woodside ink long-term LNG shipping deal
Hyundai Glovis, the logistics arm of South Korea’s Hyundai Group, has signed a long-term contract with Australian Woodside Energy to enter the liquefied natural gas (LNG) transportation business.
With this contract, which is signed for a period of up to 15 years, Hyundai Glovis plans to expand its shipping business portfolio focused on vehicle transport.
At the same time, the company aims to secure gas transport expertise to demonstrate global competitiveness.
Being the first Asian shipping company to secure a deal with Woodside, Hyundai Glovis intends to build an optimal LNG supply chain for key global customers.
As disclosed, the companies have entered a new shipbuilding contract and the business is expected to begin in the second half of 2024 when the ship is delivered. The plan entails transporting LNG produced in Australia to global consumers such as Northeast Asia.
The logistics company is believed to have recently placed a $217 million order with Korea Shipbuilding & Offshore Engineering Co. (KSOE) for a 174,000 cbm LNG carrier.
The order is said to be the company’s investment in securing maritime transport capabilities, the core of the hydrogen value chain and expanding the fleet powered by eco-friendly fuels.
Through collaboration with Woodside, Hyundai Glovis is also looking to tap into hydrogen transportation in the future thanks to accumulated know-how in the gas shipping business.
Woodside has invested in Hydrogen Energy Network (Hynet), a consortium for building hydrogen charging infrastructure in Korea, as an overseas hydrogen supplier.
Meanwhile, Hyundai Glovis is working to accelerate the preemptive establishment of the global hydrogen supply chain by starting sea transportation of ammonia and liquefied petroleum gas (LPG) from 2024 with Trafigura, Switzerland, under the contract signed last year.
The logistics company also signed a memorandum of understanding (MoU) with U.S.-based hydrogen and LNG supplier Air Products for the establishment of a domestic liquid and clean hydrogen supply chain.
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