Pan Ocean Orders Two Eco-Ready VLCCs from HD Hyundai Heavy Industries

South Korea’s Pan Ocean has placed an order for two Very Large Crude Carriers (VLCCs), marking a strategic move to enhance its competitiveness in the liquid bulk shipping sector. The 300,000 dwt vessels will be built by HD Hyundai Heavy Industries, with delivery scheduled for the third quarter of 2027.

The contract, valued at KRW 350.5 billion (USD 257 million), will double Pan Ocean’s VLCC fleet from two to four ships. Both vessels are designed to be ammonia- and LNG-ready, aligning with international efforts to reduce greenhouse gas emissions and prepare for a more sustainable energy future.

Each VLCC will measure 328 meters in length and 60 meters in beam, built to meet the International Maritime Organization’s (IMO) Phase 3 Energy Efficiency Design Index (EEDI) requirements. They will also feature selective catalytic reduction (SCR) systems to comply with Tier III NOx emission standards in designated Emission Control Areas.

In a regulatory filing, Pan Ocean noted that the newbuilds are part of its strategy to respond to tightening environmental regulations while addressing long-term market dynamics. According to the company, nearly 12% of the global VLCC fleet—about 108 vessels—will reach 20 years of age or more by 2025, with only 88 new units expected to be delivered by 2027. This projected shortfall is expected to tighten supply and create opportunities for modern, efficient tankers.

“With older vessels being phased out and IMO regulations growing stricter, early investments in eco-friendly ships will improve our competitiveness and expand our market presence,” the company stated. Despite the potential for increased demand, analysts note that South Korean shipbuilders may take a cautious stance toward additional VLCC orders. Han Seung-han, an analyst at SK Securities, pointed out that shipyards are currently prioritizing high-margin containership orders, which could limit available construction slots for VLCCs and temper negotiations on price.