Secured KRW 155.5B LPG shipment contract for 7 years

KSS LINE LTD. will decide on new facility investment for a new 84,000 CBM VLGC vessel and place an order through Hyundai Heavy Industries

KSS Line place an order for a new 84,000 CBM VLGC
Caption: Hyundai Heavy Industries, the world's largest shipbuilder, operates this shipyard in the South Korean city of Ulsan. (Photo courtesy of Hyundai Heavy Industries)

The same VLGC new vessel is scheduled to enter into a 155.5 billion size of the long-term transportation contract with BGN Group, a European-based energy company made public on the same day, for seven years from the third quarter of 2021. In 2021, when five new VLGCs, including the new vessels, are delivered, sales are expected to exceed KRW 300 billion and continue to grow.

The new 84,000 CBM-level VLGC is the world's first vessel, the same as the four vessels ordered last year. They can’t only navigate through both the new and old Panama Canal but is equipped with a scrubber capable of responding to IMO 2020 sulfur oxide (SOx) regulation.

In addition, about 5% more cargo can be loaded compared to 13 VLGCs (75,000-80,000 CBM) capable of traversing the old Panama Canal, giving charterers competitive advantages. 

The company has secured a large LPG fleet of 16 vessels (13 VLGCs and 3 MGCs) under this agreement, strengthening its position as the fifth-largest global LPG shipping company.