Korea Shipbuilding & Offshore Engineering Secures LNG and VLCC Orders Worth 1 Trillion Won

Contract Signed with European Shipyards for Construction of 4 LNG Carriers and 2 VLCCs

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, has succeeded in securing orders for a total of 6 vessels worth 1 trillion won.

Korea Shipbuilding & Offshore Engineering announced on the 16th that it recently signed construction contracts with shipping companies based in Europe, Bermuda, and Asia for four 174,000 cubic meter (㎥) LNG carriers and two 318,000-ton Very Large Crude Carriers (VLCCs). The total amount is approximately 1 trillion won.

In particular, the four LNG carriers ordered this time are all 299 meters long, 46.4 meters wide, and 26.5 meters high. Three vessels will be built by Hyundai Heavy Industries and one by Hyundai Samho Heavy Industries, and they are scheduled to be deployed for charter by the global energy company Shell by the second half of 2024.

These LNG carriers are equipped with dual-fuel propulsion engines (X-DF) and Selective Catalytic Reduction (SCR) systems to reduce nitrogen oxide (NOx) emissions, significantly lowering greenhouse gas emissions. They also feature an air lubrication system, LNG reliquefaction technology, and shaft generator facilities, enhancing their economic efficiency.

Clarkson Research, a shipbuilding and shipping market analysis firm, stated in its 'Clarksons Forecast Club' report released at the end of September that 100 LNG carriers are expected to be ordered from this year through next year. Although global ship orders slowed due to the prolonged COVID-19 pandemic this year, the resumption of orders for large LNG projects has raised expectations for additional orders in the shipbuilding industry.

Order news has continued in other vessel types as well. Korea Shipbuilding & Offshore Engineering recently succeeded in securing two additional orders for VLCCs. These vessels are equipped with sulfur oxide (SOx) scrubbers to comply with environmental regulations and will be built by Hyundai Samho Heavy Industries, with sequential delivery to the shipowners starting from the first half of 2022.

A representative from Korea Shipbuilding & Offshore Engineering stated, "Orders continue based on advanced technology and extensive construction experience, including 12 LNG carriers and 27 VLCCs this year," adding, "As discussions on various vessel types are underway, additional orders are expected to continue."

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