KSS Line has secured a seven-year charter contract with Japanese LPG trading outfit Gyxis Corporation.
The KRW165 billion (USD138.63 million) contract starts in July 2017, the South Korean LPG and chemical shipping specialist said on 4 September.
To service the contract, KSS Line has ordered an 84,000 m3 VLGC from Hyundai Heavy Industries under a KRW91.4 billion deal, with the VLGC due to be built by 31 March 2017.
Related news: KSS Line orders another LPG/ammonia carrier
KSS Line said it expects its revenue and operating profit to gradually increase from 2017 as it takes delivery of three newbuilding LPG carriers to service charter contracts of between five and 10 years.
Gyxis Corporation was formed in March 2015 through the merger of the LPG units of Cosmo Oil, Showa Shell Sekiyu, TonenGeneral Sekiyu, and Sumitomo Corporation.
Japan remains the world’s biggest LPG trader although its demand for LPG is falling due to a preference for LNG and coal.