On March 26th, the naming ceremony for HD Hyundai Sanhu (formerly Hyundai Sanhu Heavy Industries), the first 86000 cubic meter LPG dual fuel LPG/liquid ammonia transport vessel (VLGC) built by Hyundai Glovis, was held. The vessel was named the "Taebaek Explorer".
More than 70 representatives from various parties attended the naming ceremony, including Jin Taiyu, the head of modern Glovis and the shipping department, Andrea Olivi, the head of liquid bulk shipping at the global commodity trading giant Trafigura Group, and Shen Xuewu, the director of the LPG/liquid ammonia transportation department at Trafigura. Andrea Olivi's wife, Anna Maria Olivi, named the ship as her godmother, cut the ropes, and prayed for the safe sailing of the Taebaek Explorer.
The ship is equipped with an LPG dual fuel engine and a shaft generator, which can effectively reduce carbon dioxide emissions. Especially, the cargo hold of this type of VLGC is made of special materials, which can not only transport LPG but also liquid ammonia. According to Clarkson's statistics, currently there are only about 50 VLGCs worldwide that can transport liquid ammonia, accounting for approximately 10% of the total VLGC fleet.
It is reported that Hyundai Glovis has ordered the first batch of 86000 cubic meters of LPG dual fuel VLGC from HD Hyundai Sanhu, with a total of 2 vessels. The second vessel is expected to be delivered and put into operation by the middle of this year. The construction contracts for these two VLGCs were signed in August 2021, with a contract amount of 19.65 billion Korean won (approximately 167 million US dollars), and are scheduled to be delivered gradually before June 28, 2024. Modern Glovis stated that these two VLGCs will be built into state-of-the-art environmentally friendly vessels that comply with ESG (Environmental, Social, and Corporate Governance) management.
In September 2021, Hyundai Glovis signed a long-term transportation contract with Trafigura, which will transport ammonia and LPG to Trafigura starting from 2024, with a maximum contract period of 10 years.
This is also the first time modern Glovis has ordered VLGC. The plan of Hyundai Glovis is to take the operation of these two VLGCs as an opportunity to officially enter the global offshore gas transportation market. While expanding its core business - offshore automobile transportation, it will accelerate the diversification of its maritime business and consolidate its position in the maritime market. Especially in preparation for the upcoming global hydrogen era, Modern Glovis will focus on accelerating the construction of the hydrogen value chain in the next 10 years, expanding its business scope to liquid hydrogen transportation, and transporting ammonia and LPG globally.
Trafigura Group is a multinational corporation headquartered in Switzerland, mainly engaged in the trade of raw materials such as oil, natural gas, minerals, and non-ferrous metals. In 2020, Trafigura Group achieved operating revenue of approximately $150 billion and operating profit of nearly $3 billion, making it the third largest independent oil trading company and the second largest independent non-ferrous metal concentrate trading company in the world.
Hyundai Glovis is a shipping and logistics subsidiary of Hyundai Motor and Kia Motors, the largest automobile manufacturer in South Korea. Headquartered in Seoul, it was founded in February 2001 and mainly engages in the transportation of exported cars worldwide. Currently, it has 87 car transport ships, 10 bulk carriers, and 10 oil tankers.
In recent years, with the growth of global LPG demand, the LPG shipping market is rapidly developing. According to data from the International Energy Agency (IEA), by 2028, LPG demand will increase by 12% compared to 2022. Modern Glovis stated that in the expected growth trend of the LPG shipping market, the company will continue to invest in competitive ships and actively respond to global demand.
Modern Glovis stated that the company attaches great importance to the sea transportation of ammonia, which is currently the most competitive, cost-effective, and efficient hydrogen storage and transportation medium. In order to store and transport hydrogen, it must be cooled and liquefied at an ultra-low temperature of minus 253 degrees Celsius for storage and transportation. However, its storage density is low, transportation capacity is limited, and there are also limitations that have not yet been commercialized. The practical solution is to synthesize ammonia using nitrogen and hydrogen as raw materials, transport it in the form of liquefied ammonia by sea, and extract hydrogen from it after being transported to the place of use. Unlike hydrogen, ammonia is relatively easy to liquefy at room temperature, with a unit storage volume 1.7 times that of hydrogen, making it easy to transport in large quantities.
Modern Glovis officials said, "In the future, the company will also expand its gas carrier business to LNG maritime transportation, achieve diversification of maritime transportation business, and plan to further focus on ensuring the relevant forces of hydrogen energy maritime transportation, which is known as the future energy. Currently, the world is accelerating the construction of green hydrogen infrastructure, and we will promote the transportation of liquid hydrogen to seize the dominant position in global hydrogen supply and circulation."
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