<\/p>\n
\u201cOur global strategy is to build long-term relationships with the best partners.\u201d<\/p>\n
Ozan Turgut, CEO of B Shipping, shared this perspective during a recent WEEKLY BIZ interview when asked why his company partnered with South Korea\u2019s 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.<\/p>\n
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\u2019s 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.<\/p>\n
\u25c7 \u201cSouth Korea, a Long-Term Strategic Partner\u201d
\u2013 Why did you choose South Korea\u2019s HMM as a strategic partner among global shipping companies?<\/p>\n
\u201cWe 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\u2019ve built were key drivers for this collaboration.\u201d<\/p>\n
\u2013 I understand BGN Group has consistently ordered ships from South Korean shipyards.<\/p>\n
\u201cSouth 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\u2019s why, out of 11 ultra-large gas carriers (VLGCs) ordered to date, 10 were built in South Korea and one in Japan.\u201d<\/p>\n
What is the goal of the newly established joint venture?
\u201cThe core objective is to secure a stable, long-term vessel supply that supports BGN Group\u2019s growing energy portfolio through cost efficiency and operational flexibility. This builds on BGN\u2019s existing foundation in the LPG sector. We currently operate around 40 vessels and are pursuing additional orders.\u201d<\/p>\n
\u2013 What are the specific targets for the joint venture\u2019s fleet size or capacity?
\u201cIn 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.\u201d<\/p>\n
\u2013 Why was Singapore chosen as the location for the joint venture?
\u201cSingapore, as a global financial and maritime hub, offers everything needed for our business operations.\u201d<\/p>\n
\u2013 What future partnerships or business plans do you envision with South Korea?
\u201cWe 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.\u201d<\/p>\n
\u25c7 \u201cReal-Time Preparedness for Geopolitical Conflicts\u201d
\u2013 BGN is one of the world\u2019s largest LPG buyers. How do you forecast global LPG demand over the next decade, and what is your strategy?<\/p>\n
\u201cWe believe global LPG demand will remain structurally strong, driven by petrochemical production, feedstock needs, and residential energy use in emerging economies.<\/p>\n
From a shipping perspective, our strategy is to maintain flexibility and a balanced fleet composition\u2014combining joint ventures (JVs), owned vessels, and chartered ships. This approach allows us to adapt to regional demand shifts without being locked into rigid capacity.\u201d<\/p>\n
\u2013 How do you respond to shocks from geopolitical conflicts, such as risks in the Red Sea and Suez Canal?
\u201cGlobal 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.<\/p>\n
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 \u2018green light.\u2019 Even if it means taking longer routes, safety is always our priority.\u201d<\/p>\n
\u2013 Geopolitical instability is increasing maritime logistics risks.
\u201cDespite 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.\u201d<\/p>\n
\u2013 What do you see as the biggest operational risk moving forward?
\u201cOperational 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.\u201d<\/p>\n
\u2013 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?
\u201cBGN 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.\u201d
Source: The Chosun Daily<\/p>\n
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