HD Hyundai Samho, Wan Hai sign LOI for methanol-powered ships

South Korea's HD Hyundai Samho secured a potential order for four methanol dual-fuel container ships from Taiwan's Wan Hai Lines, according to the company. 

The two companies signed a letter of intent (LOI) on Thursday, with industry sources indicating a high likelihood of a formal contract within the month.

The vessels, each with a capacity of 8,700 twenty-foot equivalent units (TEU), are being negotiated at up to $133 million apiece.

The total value of the initial four-ship order could reach $521 million, with an option for an additional four ships that would bring the total contract value to 1.4 trillion won.

The ships are slated for delivery from HD Hyundai Samho's Yeongam shipyard starting in 2027.

The deal represents a milestone for Wan Hai, as its first order for methanol-powered container ships.

Industry sources attributed the recent surge in methanol container ship orders to Chinese shipbuilders, not due to technological superiority but to full order books at Korean yards.

The strong demand for container ships extends beyond top-tier shipping companies, with even smaller players placing substantial orders, shipping industry sources explained. 

Write to Hyung-kyu Kim at khk@hankyung.com