Hyundai Group’s logistics arm, Hyundai Glovis, announced on Sunday (Sep 5) that it will enter the gas shipping market in 2024. This follows after Hyundai signed a striking multi-year deal with major commodity trading company Trafigura.
The 10 years shipping deal will see Hyundai Glovis carry ammonia and liquefied natural gas (LNG) for global markets.
Following the announcement, Hyundai Glovis said that the company will build two very large gas carriers (VLGC) which boasts 86,000 square meters in capacity. The investment is expected to cost Hyundai around $173 million dollars. The move marks Hyundai’s shift towards new sectors as the company previously focused on car carrier ships.
Currently, only around 10% of VLGCs around the world are allow to carry ammonia.
In October 2020, Hyundai Heavy Industries Group and Hyundai Glovis basic design for a 20,000-cubic-meter commercial liquefied hydrogen carrier won approval in principal (AIP) from the Korean Register of Shipping and the Liberian Registry.