HMM said on the 19th that it established a Singapore joint venture (HMMB INT Shipping Pte. Ltd) with B Shipping (B International Shipping & Logistics), an affiliate of BGN, an energy corporations in the United Arab Emirates (UAE), to expand its liquefied petroleum gas (Liquefied Natural Gas·LPG) transport business.
The joint venture was established with HMM and B Shipping each investing 50%. It plans to operate two very large gas carriers with a capacity of 88,000 CBM (cubic meters·Cubic Meter). These vessels are under a 15-year long-term transport contract with an affiliate of BGN (BGN INT DMCC), are being built by HD Hyundai Heavy Industries, and will be delivered in 2027.
Based on its mid- to long-term 2030 strategy, HMM decided to establish the joint venture with BGN as it strengthens its bulk institutional sector portfolio. HMM plans to expand its LPG carrier fleet to 20 vessels. BGN operates a fleet of about 40 LPG carriers and handles transactions of 14 million tons (t) of LPG annually.
The joint venture inauguration ceremony was held on the 5th at HMM headquarters in Yeongdeungpo-gu, Seoul. About 10 executives and employees from HMM and B Shipping attended the event. Jeong Jun, head of HMM's Bulk Business Division, said, "This joint venture will proactively respond to growing gas transport demand through the strategic partnership between the BGN Group and HMM."
Ozan Turgut, CEO of BGN, said, "Through this collaboration, both companies have come to share a vision for decarbonizing the shipping industry," adding, "The future delivery of two vessels will help BGN grow its LPG business sustainably."