Hyundai Glovis said Thursday it has secured a 580 billion won ($396 million) liquefied natural gas (LNG) transportation contract that will run for up to 15 years, with the Hyundai Motor Group affiliate identifying the client only as “a global trading firm.”
The company said the contract will begin in 2029 after it acquires a new LNG carrier that will be built exclusively for the project. Hyundai Glovis did not disclose the shipbuilder, citing confidentiality agreements.
The vessel will have a capacity of 174,000 cubic meters — more than half of Korea’s average daily LNG consumption — and will load LNG in the Arabian Gulf region for delivery to destinations around the world. It will feature an advanced containment system capable of maintaining temperatures at minus 162 degrees Celsius to keep the cargo stable during long-distance transport.
The latest contract underscores Hyundai Glovis’ push to expand beyond its core business of transporting vehicles manufactured by Korean automakers to overseas markets. The company has been accelerating its transition into the energy shipping sector, covering LNG, liquefied petroleum gas (LPG) and ammonia. It outlined the strategy during an investor relations presentation last year.
Citing the International Energy Agency’s Gas 2025 report, Hyundai Glovis said global LNG trade is expected to increase by 300 billion cubic meters by 2030, equivalent to about 40 percent of the total global LNG trade volume in 2023. The company said the projection reflects the broadening diversification of global energy supply chains and the rising importance of maritime shipping.
Hyundai Glovis launched its first LNG and LPG carriers last year and plans to deploy an additional four LNG tankers by 2027.
“We will continue expanding our fleet of tankers for LNG and other energy resources to strengthen our competitiveness in the global energy shipping market,” a company official said.
Source: The Korea Times