Turkey’s Aygaz is making its first move into the very large gas carrier space, signing a $119m newbuilding contract with South Korea’s HD Hyundai Samho.
The Istanbul-based LPG distributor said in a stock exchange filing that the yard will build a VLGC for delivery in the second quarter of 2028. The vessel will be used for LPG trading and transportation and can run on conventional fuel as well as cleaner alternatives, in line with tightening emissions rules.
Aygaz said the investment is aimed at adding value across its LPG supply chain, which remains the group’s core business. The ship will be owned either directly by Aygaz or by a wholly owned subsidiary, with payments to be made in instalments, most of them ahead of delivery.
The company noted the $119m price tag represents around 12.5% of its current market value, 6.7% of total assets and close to half of its net tangible fixed assets, underlining the scale of the commitment.
While a letter of intent was signed with Hyundai Samho in December last year, Aygaz said it delayed disclosure to protect its commercial position while talks were ongoing. The announcement was made only after a binding agreement was reached.
Majority owned by the Koç Holding conglomerate, Aygaz is Turkey’s leading LPG player and the country’s only publicly listed company in the sector. Its existing shipping exposure has been limited to smaller LPG carriers of between 7,000 and 11,000 cu m, operated through its wholly owned unit Anadoluhisarı Tankercilik. The VLGC order marks a step change for the group, taking it from coastal and regional gas shipping into the deepsea LPG trade.
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