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Shipping & Shipbuilding

Hyundai Glovis inks gas shipping deal with Trafigura

The logistics company will invest $173 million to purchase two VLGCs for the 10-year deal

By Sep 06, 2021 (Gmt+09:00)

Very large gas carrier (VLGC) sized at 86,000 cubic meters
Very large gas carrier (VLGC) sized at 86,000 cubic meters

South Korea’s Hyundai Glovis Co. has inked a deal with global commodities trader Trafigura to transport gas and ammonia as part of its longer-term strategy to make headway in the global hydrogen market.

Hyundai Motor Group’s logistics unit signed on Sept. 2 an agreement to ship liquefied petroleum gas (LPG) and ammonia for Trafigura for up to 10 years from 2024, when the shipping company receives new tankers.

The company will invest 200 billion won ($172.8 million) to buy two very large gas carriers (VLGCs) sized at 86,000 cubic meters each, the largest gas carriers in the world, Hyundai Glovis said on Sept. 5.

The vessels will be powered by an engine that uses both diesel and LPG to reduce carbon dioxide emissions. They will be equipped with a shaft generator to eliminate the need for independently driven generators when the ship is sailing in open waters. A shaft generator is a clean source of power since it does not burn any fuel to generate power.

The VLGCs' cargo area will be made with special materials to allow the transportation of ammonia. Currently, only about 20 VLGCs in the world are able to ship ammonia, less than 10% of the total global VLGC fleet.

Ammonia is currently considered the most efficient hydrogen storage and transportation medium, according to Hyundai Glovis.

Write to Byung-Uk Do at dodo@hankyung.com

Jongwoo Cheon edited this article.

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