KSOE piles up newbuild orders with new VLGC deal

South Korean shipping major Korea Shipbuilding & Offshore Engineering Co. (KSOE) has signed a deal to construct two very large gas carriers for an undisclosed shipowner.

Illustration VLGC; Image credit KSOE

According to the company’s stock exchange filing, the ships will be constructed by KSOE’s unit Hyundai Samho Heavy Industries.

The KRW 255.4 billion (US$197.1 million) order was placed by a shipowner located in the Middle East.

The company plans to deliver the LPG carriers by January 2026.

The order comes a week after the company revealed it will build two LPG carriers for an unnamed shipowner from Oceania.

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KSOE has three subsidiaries under its wing, Hyundai Heavy Industries (HHI), Hyundai Mipo Dockyard (HMD) and Hyundai Samho Heavy Industries.

Only this year, the South Korean shipbuilder has scored $5.08 billion in orders to construct 36 vessels or 32.3 percent of its yearly target of $15.74 billion.

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In 2022, KSOE won $24.0 billion (197 vessels) worth of orders, 38 percent more than its target ($17.4 billion).

Compared to coal, liquefied petroleum gas is a cleaner fuel. Consequently, The demand for LPG tankers is likely to rise as the usage of LPG spreads beyond domestic to industrial and commercial applications.