Turkish LPG distributor Aygaz is significantly scaling up its ambitions in deepsea gas shipping, placing an order for two further very large gas carriers (VLGCs) at South Korea’s HD Hyundai Heavy Industries, according to Splash247.
The Istanbul-based company has contracted the shipbuilder for a pair of dual-fuel LPG carriers, each with a capacity of approximately 90,000 cubic metres. The latest order effectively triples the size of what had been a modest entry into the VLGC segment, marking a notable strategic shift for a business historically focused on domestic LPG distribution in Turkey.
A rapidly expanding fleet commitment
Aygaz had already placed earlier VLGC orders before committing to this additional pair, and the new contract brings its total newbuilding programme to a considerably larger scale. The move signals that the company is positioning itself as a meaningful player in international LPG shipping rather than simply dipping a toe into deep-sea trades.
The decision to specify dual-fuel capability reflects growing industry caution over emissions regulations. Vessels able to burn LPG as a marine fuel offer operators greater flexibility in complying with tightening International Maritime Organization standards, and are widely seen as a more future-proof investment compared with conventional propulsion systems.
South Korea remains the yard of choice
HD Hyundai Heavy Industries, part of the HD Hyundai group, is one of the world’s foremost builders of gas carriers and has a well-established track record in the VLGC segment. South Korean yards have long dominated the construction of large LPG and LNG tonnage, benefiting from accumulated technical expertise and strong relationships with major gas shipping operators.
Aygaz’s repeated return to South Korea for its newbuilding requirements underscores the continued dominance of Korean shipbuilders in the specialist gas carrier market, even as Chinese yards have made inroads into other vessel categories.
Context: LPG shipping demand outlook
The VLGC market has attracted considerable investment in recent years, driven by rising global demand for LPG — particularly from Asia — and the growth of US propane exports. Shipping rates in the segment have been volatile, but the long-term demand trajectory has encouraged several operators to expand their fleets.
- Global LPG trade has been underpinned by rising petrochemical feedstock demand, particularly in China and India.
- US shale production continues to generate substantial LPG export volumes, sustaining long-haul VLGC trades across the Pacific.
- Dual-fuel newbuildings are increasingly preferred by charterers conscious of carbon intensity requirements.
For Aygaz, the expansion into international shipping represents a diversification away from its core Turkish retail and distribution business. The company is part of the Koç Group, one of Turkey’s largest industrial conglomerates, giving it the financial backing to support a capital-intensive fleet investment programme.
Delivery timeline
Specific delivery dates for the two new vessels were not disclosed in the available details, though newbuilding slots at major Korean yards are typically booked two to three years in advance, suggesting the ships would likely enter service in the mid-to-late 2020s.
As Aygaz builds out its VLGC fleet, it joins a growing roster of energy companies and national distributors that have moved to secure their own shipping capacity rather than relying entirely on the spot and time-charter markets — a strategy that offers greater supply chain control but demands sustained capital commitment.