Korea’s HHIC to build two LPG carriers for South East Asia company

15 March 2015 (Last Updated March 15th, 2015 18:30)

Korean shipbuilder Hanjin Heavy Industries & Construction (HHIC)'s Yeongdo Shipyard has signed a $105m agreement with a South East Asia ship owner to construct two LPG carriers.

Korean shipbuilder Hanjin Heavy Industries & Construction (HHIC)’s Yeongdo Shipyard has signed a $105m agreement with a South East Asia ship owner to construct two LPG carriers.

The new, 180m-long and 296m-wide carriers will be able to carry LPG and ammonia, as well as offering improved fuel efficiency with energy-saving design and resistance-minimising propellers.

With the support of an environmentally friendly G-type engine, the vessels will also reduce the production of hazardous gases, the shipbuilder stated.

"Thanks to the recent popularity of shale gas in North America, LPG production has dramatically increased."

A HHIC Yeongdo Shipyard official said: "Thanks to the recent popularity of shale gas in North America, LPG production has dramatically increased.

"Because of the expansion of consumption and increase in order quantity for LPG carriers among emerging countries, further orders are expected to follow."

In 2013, HHIC-Phil’s Subic Shipyard received orders to construct similar eight vessels.

The company said it has already booked 39 advance ship building orders worth around $2.6bn, covering three years of production and further strengthening its position.

"We are going to establish a high-efficiency global production system with a two-track strategy, which means that Subic Shipyard specialises in the production of large vessels and offshore plants while Yeongdo Dockyard focuses on mid-size and special-purpose vessels," the official added.

HHIC received orders for 300,000dwt very large crude carrier (VLCC) and 10,000TEU ultra-large container ship in 2014. The company also secured a bid to construct a LNG bunker vessels last year.