Diversified UK owner Union Maritime is expanding its newbuilding push with its first very large gas carrier (VLGC) order, according to market sources and shipping data platforms cited by Splash247. The company, led by Laurent Cadji, has been linked to two VLGC/VLAC newbuildings at HD Hyundai Heavy Industries in South Korea. The vessels are expected to cost roughly $234 million in total and deliver in 2029. Neither Union Maritime nor HD Hyundai has publicly confirmed the owner or the price, but the deal would mark Union Maritime’s entry into the large gas carrier sector.
Newbuilding Details
The reported order includes two very large gas carriers (VLGC) that can also carry ammonia (VLAC). The ships are being built at HD Hyundai Heavy Industries, one of South Korea's major shipyards. The total investment of approximately $234 million represents a significant commitment to the gas carrier market. Deliveries are scheduled for 2029, indicating a long-term strategic move by Union Maritime.
Union Maritime's Expanding Fleet
Union Maritime has built a broad orderbook across multiple vessel types, Splash247 reported. Earlier this year, the company was linked to its first newcastlemax bulk carrier order, with brokers reporting a deal for up to four 215,000 dwt vessels at Wuhu Shipyard in China. That followed a long run of tanker contracting, much of it in China, including LNG dual-fuel and wind-assisted tonnage. The company’s fleet list of more than 100 ships shows a wide mix of owned, chartered, and managed vessels across crude, product, chemical, and dry bulk shipping.
Market Context
The reported VLGC move comes during a strong year for gas carrier contracting amid record rates, according to Splash247. South Korean yards have captured much of the recent VLGC and ammonia-ready ordering, with HD Hyundai Heavy building up a large book of LPG and ammonia carrier contracts. This order adds Union Maritime to the list of owners expanding into the gas sector.
Union Maritime was previously linked to an LPG carrier order at Hyundai Heavy in 2020, but that deal did not develop into the gas carrier buildout now being reported.
Industry Implications
For the shipping industry, this order signals continued confidence in the LPG/ammonia carrier market, despite long delivery times. The involvement of a diversified owner like Union Maritime suggests that gas shipping is becoming an attractive diversification play for shipowners with existing tanker and bulk operations. The strong orderbook at South Korean yards may also indicate capacity constraints for early deliveries, pushing owners to secure slots further out.
For freight forwarders and logistics managers, the expansion of the VLGC fleet could eventually increase available capacity for LPG and ammonia shipments, potentially influencing freight rates in the medium term. However, the deliveries are not expected until 2029, so immediate market impact is limited.
Watch list
Factors that could affect this situation include:
- Final confirmation from Union Maritime and HD Hyundai on the order and price.
- Any changes in LPG/ammonia demand or regulatory developments that could alter the gas carrier market.
- Union Maritime's further newbuilding plans across other sectors.
No further details are available from the source.
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