Hyundai Merchant Marine has entered a letter of intent (LoI) with Daewoo Shipbuilding & Marine Engineering (DSME) to build five 300,000t very large crude carriers (VLCCs). The deal includes an option for five additional vessels andis expected to be finalised by the end of July. HMM and DSME are also set to discuss liquefied natural gas (LNG) carrier engines and other various eco-friendly technologies, which may potentially be used on-board the vessels. The VLCCs will be the first ships to be developed under a new KRW 2.6 trillion shipbuilding programme that was first announced by the Korean government in October.