“Our global strategy is to build long-term relationships with the best partners.”
Ozan Turgut, CEO of B Shipping, shared this perspective during a recent WEEKLY BIZ interview when asked why his company partnered with South Korea’s HMM. B Shipping, a transportation subsidiary of the UAE-based energy trading firm BGN Group, holds a 10% global market share in LPG trading and transportation.
Last November, B Shipping and HMM each invested 50% to establish HMMB International, a Singapore-based joint venture aimed at expanding LPG transportation. The venture plans to operate two 88,000 CBM-class ultra-large gas carriers. These vessels are contracted under a 15-year deal with BGN’s subsidiary (BGN INT DMCC) and will be built by HD Hyundai Heavy Industries, with delivery scheduled for 2027. HMM decided to form the joint venture to strengthen its bulk sector portfolio under its mid- to long-term strategy. WEEKLY BIZ spoke with Ozan Turgut about the rationale behind partnering with HMM and strategies to address geopolitical instability.
◇ “South Korea, a Long-Term Strategic Partner”
– Why did you choose South Korea’s HMM as a strategic partner among global shipping companies?
“We selected HMM due to its strong operational discipline and proven success record. HMM has a long-term vision and the capability to operate vessels safely and efficiently even in volatile markets. The quality of its fleet, compliance standards, and the strong relationship we’ve built were key drivers for this collaboration.”
– I understand BGN Group has consistently ordered ships from South Korean shipyards.
“South Korea has demonstrated unparalleled growth over decades, with world-class shipbuilding technology. In the gas carrier sector, Korean and Japanese shipyards remain global leaders. We recognize the importance of safety, efficiency, and lifecycle performance in LPG carrier investments and operations. That’s why, out of 11 ultra-large gas carriers (VLGCs) ordered to date, 10 were built in South Korea and one in Japan.”
What is the goal of the newly established joint venture?
“The core objective is to secure a stable, long-term vessel supply that supports BGN Group’s growing energy portfolio through cost efficiency and operational flexibility. This builds on BGN’s existing foundation in the LPG sector. We currently operate around 40 vessels and are pursuing additional orders.”
– What are the specific targets for the joint venture’s fleet size or capacity?
“In the short term, two VLGCs are under construction at HD Hyundai Heavy Industries, set for delivery in 2027. We are also in discussions for further orders. Simultaneously, we continuously monitor market conditions to assess long-term cargo prospects and financing opportunities. Our focus extends beyond merely expanding fleet size to ensuring sound investments from a long-term perspective.”
– Why was Singapore chosen as the location for the joint venture?
“Singapore, as a global financial and maritime hub, offers everything needed for our business operations.”
– What future partnerships or business plans do you envision with South Korea?
“We view South Korea as a long-term strategic partner in various areas, including ship ownership, shipbuilding, and future energy value chains such as ammonia transportation.”
◇ “Real-Time Preparedness for Geopolitical Conflicts”
– BGN is one of the world’s largest LPG buyers. How do you forecast global LPG demand over the next decade, and what is your strategy?
“We believe global LPG demand will remain structurally strong, driven by petrochemical production, feedstock needs, and residential energy use in emerging economies.
From a shipping perspective, our strategy is to maintain flexibility and a balanced fleet composition—combining joint ventures (JVs), owned vessels, and chartered ships. This approach allows us to adapt to regional demand shifts without being locked into rigid capacity.”
– How do you respond to shocks from geopolitical conflicts, such as risks in the Red Sea and Suez Canal?
“Global uncertainty is an unavoidable daily challenge in the energy industry. We monitor worldwide situations in real time to secure the best information for decision-making. Decisions are based on the highest safety, risk management, and regulatory compliance standards.
When the Red Sea situation escalated, we immediately suspended all vessel operations through the area. We do not operate our fleet unless risk authorities and insurers give the ‘green light.’ Even if it means taking longer routes, safety is always our priority.”
– Geopolitical instability is increasing maritime logistics risks.
“Despite this uncertainty, we maintain efficiency and reliability through close collaboration between our shipping operations and trading functions. Risk management is embedded in everything BGN does, including our shipping strategy, from a global perspective.”
– What do you see as the biggest operational risk moving forward?
“Operational risks manifest in various forms beyond geopolitics. Key factors include changes in major maritime route structures, insurance availability, and financial costs. BGN Group consistently focuses on risk analysis and management to comply with evolving regulatory requirements.”
– Decarbonization is accelerating in the shipping industry. Does BGN have concrete plans to introduce next-generation alternative-fueled vessels, such as ammonia or methanol-powered ships?
“BGN Group aims to contribute to a sustainable energy future. We are investing in dual-fuel vessels capable of using both traditional and low-carbon fuels. Our strategy and vision involve acquiring ships powered by green energy sources like ammonia and methanol, which are rapidly emerging as low-emission fuels in the shipping industry.”
Source: The Chosun Daily
