Hyundai Glovis CEO Kim Jung-hoon, left, and Woodside CEO Meg O'Neill display contracts for the Korean firm's shipment of liquefied natural gas produced in Australia, during an online signing ceremony at their offices, Tuesday. Courtesy of Hyundai Glovis

By Park Jae-hyuk

Hyundai Glovis signed a long-term contract with Woodside, an Australian energy company, to ship liquefied natural gas (LNG) produced in Australia to Northeast Asia and other regions for up to 15 years, the Korean firm said Tuesday.

The online signing ceremony was attended by representatives from both companies, including Hyundai Glovis CEO Kim Jung-hoon and Woodside CEO Meg O'Neill.

Their contract period is 10 years with an additional five-year extension option.

The logistics arm of Hyundai Motor Group plans to start delivering LNG from Australia in the second half of 2024, once it receives a new LNG ship to be built for the project from a local shipbuilder.

"We will play an important role as a global shipping company in line with the trend of energy conversion," a Hyundai Glovis official said. "We will show global competitiveness in the area of gas shipping."

Hyundai Glovis is the first Asian shipping company to join hands with Woodside.

Based on the latest deal, the Korean firm aims to expand its presence in gas shipping, so that it can gain a competitive edge over its rivals in delivering hydrogen to the global market.

Given that Woodside is the only overseas investor in Korea's Hydrogen Energy Network (Hynet) consortium organized for the construction of hydrogen refueling infrastructure, Hyundai Glovis is considering signing another contract with the Australian company to ship hydrogen by sea.

In addition, Hyundai Glovis seeks to accelerate its efforts to establish a global hydrogen supply chain by shipping ammonia and liquefied petroleum gas (LPG) by sea starting in 2024, in accordance with its contract signed last year with Switzerland's Trafigura, the world's third-largest raw materials trading company.