HD Hyundai Heavy wins $467 million gas carrier contract

HD Hyundai Heavy Industries signed a 625.8 billion won ($467 million) contract on Oct. 15, 2026, to construct four very large gas carriers for a Middle East shipping company.

The agreement represents 3.56% of the shipbuilder's 2025 consolidated annual revenue of 17.58 trillion won ($13.1 billion). Work will take place entirely at the company's primary shipyard in Ulsan.

Shipyard operations for the four vessels run from Oct. 14, 2026, to June 30, 2030. That schedule commits berth space and dry dock capacity in Ulsan for three years and eight months.

Parent intermediate holding company HD Korea Shipbuilding & Offshore Engineering disclosed the subsidiary award simultaneously on the financial regulatory docket. The holding group manages commercial contracting across three domestic yards.

The order lifts cumulative 2026 contract wins at HD Korea Shipbuilding & Offshore Engineering to 174 vessels valued at $19.25 billion. That total covers 82.6% of the group's full-year target of $23.31 billion.

The price per hull equates to roughly $116.7 million based on the contract exchange rate of 1,340.50 won per dollar. The vessels belong to the very large gas carrier segment designed to transport liquefied petroleum gas.

Dual-fuel propulsion systems allow the ships to burn liquefied petroleum gas as bunker fuel alongside conventional marine diesel. That dual-fuel specification reduces carbon dioxide emissions and complies with tighter International Maritime Organization discharge rules.

Dry docks across South Korea's primary shipyards remain booked through late 2029. The multi-year delivery queue allows domestic builders to price future production slots selectively rather than chasing bulk cargo volume.

HD Hyundai Heavy Industries has used that pricing leverage to prioritize high-value gas tonnage over lower-margin container and bulk vessels. The strategy protects operating margins against steel plate price volatility and yard labor expenses.

Chinese shipbuilders continue to expand their presence in conventional merchant ship construction. South Korean yards have countered by concentrating their production capacity in liquefied gas carriers and specialized tankers.

Payment terms under the contract follow standard shipbuilding milestones tied to steel cutting, keel laying and launch stages. HD Hyundai Heavy Industries collected an advance deposit upon execution to support raw material procurement.

The regulatory filing does not state the corporate name of the Middle Eastern buyer. HD Hyundai Heavy Industries also did not disclose whether the agreement includes options for subsequent sister ships.

Deliveries will conclude sequentially by June 30, 2030, marking the formal completion of the quartet and releasing the assigned Ulsan construction slots.