Hyundai Samho Heavy Industries Co., a local shipbuilder, said Thursday it has clinched a deal to build two bulkers fueled by liquefied natural gas (LNG).
Under the deal with H-Line Shipping Co., a midsize South Korean shipper, Hyundai Samho will build two 180,000-ton vessels, which will be used on a route between South Korea and Australia starting in 2022.
The value of the deal was not revealed.
This is the second time that H-Line has placed an order for LNG-fueled vessels with Hyundai Samho Heavy, an affiliate of industry leader Hyundai Heavy Industries Co. Last October, the shipper placed an order worth 140 billion won for two LNG-fueled bulkers.
With the latest order, there will be seven LNG-powered vessels in South Korea.
Demand for LNG-fueled vessels is expected rise due to a new International Maritime Organization (IMO) regulation. The IMO will lower the sulfur content cap for marine fuels from 3.5 percent to 0.5 percent in 2020.
LNG is considered more environmentally friendly than the Bunker C oil used for marine fuel, since it produces lower levels of fine dust and sulfur oxides.