Hyundai LNG Shipping inks 20-year lease deal with Malaysia’s Petronas

Hyundai LNG Shipping will hire up to six liquefied natural gas carriers owned by Malaysia-based Petronas LNG for 20 years beginning 2024.

The contract involves 174,000-cubic-meter LNG vessels and could be the largest in South Korea’s history in terms of cargo capacity.

Under the deal, Hyundai Heavy Industries will build the vessels. It was not disclosed how much Hyundai LNG Shipping would have to pay Petronas.

The vessels will transport LNG from Kitimat, British Columbia, to Asian countries including Japan and China under Petronas’ “LNG Canada” project.

Hyundai LNG Shipping suffered an operating loss of 7.4 billion won in 2020, up 86 percent on-year.

South Korean private equity firm IMM PE owns a 100 percent stake in Hyundai LNG Shipping.