Dubai energy trader BGN has emerged as the owner behind the order for the construction of two Very Large Gas Carriers (VLGCs) at Hyundai Heavy Industries.
HHI’s parent company HD KSOE announced the deal in a stock exchange filing in mid-January. The deal is said to be worth KRW 310 billion ($235 million).
The vessels will support BGN’s successful liquefied petroleum gas (LPG) trading platform and will be able to carry ammonia, an essestian product for the global energy transition.
“BGN is making long-term commitments by investing in new ships to support its growing energy trading business and to help improve the emissions performance of the vessels it uses to move commodities. Its traders also use the shipping spot market and time charters to move energy to wherever it is needed ,” the company said confirming the deal.
The company said that it expected the newbuilds to be delivered by 2027.
BGN welcomed two newbuild LPG carriers in 2023 as part of a joint venture with Al Seer Marine and took delivery of two others in early 2024 through a partnership with Pertamina International Shipping.
South Korean shipbuilding giant HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has been on a winning streak since the beginning of the year.
Since the beginning of this year, the South Korean shipbuilder scored orders to build 32 vessels worth $3 billion, or 22.2 percent of its yearly target of $13.5 billion.
At the beginning of this week, the shipbuilding major won an order for the construction of three very large ammonia carriers (VLACs) for an unnamed shipping company from Central and South America .