The signing ceremony marking the commencement of vessel construction took place amidst the proceedings of Gastech 2023, a significant event held in Singapore.

HD KSOE, a prominent South Korean shipbuilding company, has entered into agreements to construct the world's first four 88,000 cubic meter (CBM) VLACs (Very Large Ammonia Carriers) in collaboration with Capital Gas and Eastern Pacific Pte (EPS) of Singapore. The construction of these vessels will be overseen by HD Hyundai Heavy Industries, a subsidiary of HD KSOE, situated in Ulsan.

What sets these VLACs apart from conventional very-large gas carriers is their exceptional ammonia loading capacity within the cargo tanks. Specifically, the innovative design of these tanks will enable them to transport ammonia at levels of up to 98% of the cargo tank's total capacity. The scheduled delivery of these VLACs is anticipated to occur in the latter half of 2027.

Capital Gas is currently executing one of the most extensive and diversified shipbuilding initiatives, encompassing a total of 59 newbuildings, with delivery timelines spanning from 2020 to 2027. This comprehensive program includes the procurement of the world's first two groundbreaking liquefied CO2 (LCO2) carriers, each boasting a capacity of 22,000 cubic meters. These LCO2 carriers are expected to be delivered between 2025 and 2026.

In alignment with its overarching decarbonization strategy, Capital Gas recently became a member of the MAMII, an initiative introduced in September 2022. The primary objective of MAMII is to identify, accelerate, and advocate technological solutions for the maritime sector, specifically targeting the measurement and management of methane emissions activities. By doing so, MAMII seeks to minimize the environmental footprint associated with liquefied natural gas (LNG) usage in shipping, all while facilitating the transition towards future fuel solutions.

This venture signifies a significant milestone in the maritime industry's ongoing commitment to advancing sustainable and environmentally friendly practices. With the construction of these innovative VLACs, the industry is poised to make significant strides in the transportation of ammonia, a critical component in various industrial and agricultural applications.

The enhanced ammonia loading capacity of these vessels will enable more efficient and economical transportation of this essential cargo, contributing to the global supply chain. Moreover, Capital Gas's participation in the MAMII initiative underscores its dedication to addressing methane emissions, further aligning the maritime sector with sustainable objectives and future fuel alternatives.

As the maritime industry continues to evolve and adopt cleaner technologies, collaborations like this one serve as compelling examples of the sector's commitment to reducing its environmental impact and embracing innovative solutions for a more sustainable future.