Daewoo Shipbuilding Secures 2 Trillion KRW Contract for Icebreaking LNG Carrier

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] Amid the domestic shipbuilding industry's slump due to the impact of the novel coronavirus infection (COVID-19), Daewoo Shipbuilding & Marine Engineering (DSME) has succeeded in securing orders worth 2 trillion won.

On the 12th, DSME announced that it had received orders for a total of six liquefied natural gas (LNG) carriers worth 2.0274 trillion won from two European shipowners. The contract amount per vessel is known to be 330 billion won, with delivery planned by the end of 2023.

The icebreaking LNG carriers ordered by DSME are presumed to be related to Russia's large-scale LNG development project, 'ARCTIC LNG-2.' This is because Novatek, the Russian state-owned energy company leading this project, plans to order or has ordered about 25 icebreaking LNG carriers in the first and second phases.

Including the six LNG carriers, DSME has secured orders for a total of 13 vessels this year: two LNG-FSUs (liquefied natural gas storage and transshipment facilities), one LNG-FSRU (floating storage and regasification unit for large-scale LNG), two shuttle tankers, and two very large crude carriers (VLCCs). DSME's total order amount this year reaches 3.3 billion dollars, which is about 46% of this year's target order amount.

The shipbuilding industry places significance on DSME's large-scale order of high value-added vessels, the icebreaking LNG carriers. The 'Arc (ARC)-7 class' icebreaking LNG carriers, presumed to be contracted by DSME, can carry LNG and navigate by breaking ice up to 2.1 meters thick. DSME was the first in the world to secure an order for this type of vessel back in 2014.

There is also optimism that if additional icebreaking LNG carriers are ordered from Russia and Mozambique by the end of this year, the domestic shipbuilding industry could achieve its order targets.

This content was produced with the assistance of AI translation services.