Hyundai Glovis, the logistics arm of South Korea’s Hyundai Group, has entered into an agreement with Switzerland-based commodity trading company Trafigura to ship ammonia and liquefied natural gas (LPG) from 2024.
Under the agreement, two parties will spend KRW200 billion ($172.8 million) to build two very large gas carriers for ammonia and LPG transportation.
The new vessel is expected to reach the largest level among global gas carriers with a loading capacity of 86,000 cbm.
Additionally, the ships will be equipped with LPG dual-fuel engines and shaft generators to reduce carbon dioxide emissions. The duration of the contract is 10 years.
With this new contract, Hyundai Glovis plans to expand its business service focusing also on the hydrogen supply chain.
“We will see the process of building a hydrogen value chain gather speed. We plan to carry liquefied hydrogen and take lead in global hydrogen distribution,” according to the company.
Last year, the company teamed up with Oslo-based company Wilhelmsen Group to explore the potential of the global gas shipping market, and research into alternative vessel fuels, such as liquefied hydrogen.