South Korea’s shipping giant HMM will establish a joint venture with B International Shipping & Logistics, a BGN group company, to expand the liquefied petroleum gas (LPG) shipping business.

The new joint venture, HMMB INT Shipping, is based in Singapore with plans to operate two very large gas carriers (VLGCs), each with a capacity of 88,000 cbm, under a 10-year contract with the option to extend by another 5 years.

These vessels are currently under construction at HD Hyundai Heavy Industries and are scheduled for delivery in the first half of 2027.

The aim of this partnership is to expand the scope of liquefied petroleum gas (LPG) transportation operations.

The large national carrier HMM said the joint venture is equally funded by HMM and B International Shipping & Logistics, each holding a 50% stake.

BGN Group is a global trading company, handling approximately 14 million tons of LPG annually and operating a fleet of over 40 LPG vessels.

HMM, which previously operated five LPG vessels, suspended the business in 2016. Under its 2030 mid-to-long term strategy, HMM is now reinforcing its bulk business portfolio, with plans to expand its LPG and ammonia fleet to 20 vessels by 2030.

It is worth noting that the company has already acquired this year three mid-sized LPG vessels.

An HMM official stated, “This joint venture marks a strategic move to actively respond to the growing demand for gas transportation and sets the stage for future collaboration in low-carbon and environmentally sustainable energy logistics.”