South Korea’s Hyundai Glovis, best known for its car carrier fleet, has officially entered the liquefied natural gas (LNG) shipping segment via a long-term contract with Australian energy firm Woodside.
The logistics unit of Hyundai Motor Group is the first Asian shipping company to sign a contract with Australia’s largest LNG producer. The deal is for 10 years firm and comes with an extension option of an additional five years.
The contract is expected to commence in earnest in the second half of 2024 when the 174,000 cu m LNG carrier, costing $217m, is delivered by Hyundai Samho. The plan is to transport LNG produced in Australia to global consumers such as Northeast Asia.
Hyundai Glovis said that while it aims to expand the shipping business portfolio centered on vehicle transport, it also plans to accumulate related gas transportation know-how to demonstrate competitiveness in hydrogen shipping by working together with Woodside, who invested in Hynet (Hydrogen Energy Network), a consortium for building hydrogen charging infrastructure in Korea.
Last year, Hyundai Glovis announced its entry into the gas shipping market after striking a deal with commodity trader Trafigura to ship ammonia and liquefied petroleum gas (LPG) from 2024. Two 86,000 cu m VLGCs worth around $86m each will be built as part of the deal.