May 02, 2024 [Splash 247]- Commodities giant Trafigura has contracted four ammonia dual-fuel midsize gas carriers at HD Hyundai Mipo Dockyard in South Korea.

The vessels will carry LPG or ammonia, with the first delivery due in 2027.

One of the world’s largest charterers, with around 400 ships under management, said the latest order was part of the company’s commitment to reduce the carbon intensity of its own shipping fleet by 25% by 2030.

Trafigura has been looking for ways to reduce emissions from its fleet and is one of the operators to have tested several alternative shipping fuels including LNG, methanol, LPG and biofuels on its owned and chartered vessels. It has also co-sponsored the development of an ammonia two-stroke engine by MAN Energy Solutions.

“We are excited to embark together with HD Hyundai Mipo on this ambitious project which supports our commitments to decarbonising shipping and will help us to develop the global low-carbon ammonia bunkering infrastructure needed for zero-carbon shipping to become a reality,” said Andrea Olivi, head of wet freight for Trafigura.

No price has been revealed for this order. Exmar LPG, a joint venture between gas shipowners Exmar of Belgium and Stonepeak’s Seapeak splashed about $80.5m on each 46,000 cu m ship at Hyundai Mipo earlier this year. The jv is set to become the first shipowner in the world to take delivery of ammonia-powered ships in early 2026.

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