South Korean shipping company HMM has established a joint venture in Singapore with B International Shipping and Logistics, a subsidiary of the UAE-based BGN Group.
The new entity, named HMMB INT Shipping, aims to expand the company's liquefied petroleum gas (LPG) transportation business.
The joint venture involves a 50 per cent investment from both HMM and B International Shipping and Logistics. It will operate two 88,000 cubic-metre very large gas carriers (VLGC).
These vessels have been secured under a 15-year long-term transport contract with BGN INT, the raw materials and energy trading affiliate of the BGN Group.
The VLGCs are currently under construction at Hyundai Heavy Industries and are scheduled for delivery in the first half of 2027.
HMM, which discontinued its LPG operations in 2016, said it continues to strengthen its bulk shipping portfolio as part of its "2030 mid- to long-term strategy." The company plans to expand its LPG and ammonia transport fleet to approximately twenty vessels by 2030.
Jeong Jun, Head of HMM's Bulk Business Division, stated, “The establishment of this joint venture will be a future-oriented milestone that will actively respond to the growing demand for gas transportation through the strategic partnership between BGN Group and HMM.”