KSOE clinches $199 million deal for LPG carrier duo

South Korean shipping major Korea Shipbuilding & Offshore Engineering Co. (KSOE) has signed a deal with an undisclosed shipowner for the construction of two liquefied petroleum gas (LPG) carriers.

According to the company’s stock exchange filing, the vessels will be constructed by KSOE’s unit Hyundai Heavy Industries (HHI). The KRW 258.1 billion (US$199 million) order was placed by a shipper located in Central America.

The company plans to deliver the LPG carriers by 15 November 2025.

The South Korean heavyweight has scored $23.02 billion worth of orders so far this year or 132 percent of its yearly target of $17.44 billion. The orders encompass the construction of 192 vessels.

Meanwhile, HHI has been working on a new design for LPG carriers. Recently, together with its compatriot Hyundai Mipo Dockyard (HMD), the firm was granted an approval-in-principle (AiP) from classification society ABS for an ammonia-powred LPG carrier design.

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On the occasion, Won Ho Joo, senior executive vice president and chief technical officer of HHI, emphasized that this joint development will be the first step in the commercialisation of ammonia fuel and accelerate decarbonisation in maritime transportation.

Ammonia is one of the main alternative fuel options currently considered by shipping for net-zero operations, in line with the targets set up by the International Maritime Organization (IMO) to reduce greenhouse gas (GHG) emissions in the maritime sector by 2030 and 2050.

The International Energy Agency (IEA) earlier predicted that ammonia will account for around 45% of global energy demand for shipping in 2050.