Daewoo Shipbuilding & Marine Engineering Secures 10 Crude Oil Tankers for 1.0959 Trillion KRW

This Year, Consecutive Orders in the Korean Shipbuilding Industry

Daewoo Shipbuilding & Marine Engineering's Ultra Large Crude Carrier (VLCC)

[Asia Economy Reporter Choi Dae-yeol] Daewoo Shipbuilding & Marine Engineering (DSME) has scored a jackpot with orders worth 1.1 trillion won. Following large-scale contracts secured by other domestic big two shipbuilders, Korea Shipbuilding & Offshore Engineering and Samsung Heavy Industries, which won contracts worth 835 billion won and 794.2 billion won respectively from overseas shipowners, DSME has now signed contracts exceeding 1 trillion won, bringing the total amount secured by the domestic shipbuilding industry in the past three days to 2.7 trillion won.

DSME announced on the 12th that it had secured an order for 10 Very Large Crude Carriers (VLCCs) worth 1.0959 trillion won. The company was recognized for its eco-friendly technology while also securing a large volume of work. According to the company, the orders came from three shipowners in the Americas, Europe, and Asia, for 300,000-ton class VLCCs. After signing a letter of intent in December last year, the final contract was concluded within three months. The ships will be built at the Okpo Shipyard and delivered sequentially to the shipowners by the second half of 2023.

The vessels ordered this time will be equipped with high-pressure dual-fuel propulsion engines (ME-GI engines) and fuel tanks made of high-manganese steel. DSME applied its independently developed smart ship solution, DS4. This technology helps the ships operate efficiently and safely with a natural gas propulsion system. It also meets the International Maritime Organization (IMO) Energy Efficiency Design Index (EEDI) Phase 3 greenhouse gas emission regulations.

On the 11th, at Daewoo Shipbuilding & Marine Engineering's Seoul office, Park Hyung-geun Executive Director (from left), Lee Sung-geun President, and Woo Je-hyuk Executive Director are holding the contract and posing for a commemorative photo during the liquefied natural gas (LNG) dual-fuel ultra-large crude carrier (VLCC) construction contract signing ceremony held via video conference.

With this order, DSME will produce LNG-powered LNG carriers, container ships, shuttle tankers, LPG-powered LPG carriers, and now LNG-powered oil tankers. This means the company has secured orders for dual-fuel propulsion vessels across all ship types. The company explained, "We have secured technologies for both high-pressure and low-pressure propulsion engines, which broadens the choices for shipowners."

DSME has been recognized as the shipbuilder that has constructed the most VLCCs. According to Clarkson Research, out of the 870 VLCCs currently in operation worldwide as of the end of February, DSME built 167 vessels at a single shipyard. Given the global trend toward eco-friendly policies, demand for LNG-powered oil tankers is expected to increase, and the industry anticipates that DSME, with its extensive VLCC experience, will secure a favorable position in this market.

The company stated, "This large-scale order has verified our technology for LNG-powered vessels to shipowners," adding, "DSME will continue to lead the market in the eco-friendly oil tanker sector."

So far, DSME has secured orders for a total of 16 vessels worth 1.56 billion dollars, including 10 VLCCs, 4 container ships, and 2 ultra-large LPG carriers. This achievement accounts for about 20% of this year's target of 7.7 billion dollars.

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