LNG Carrier 'Hero' Exceeding 330 Billion KRW Per Vessel... Leading the Korean Shipbuilding Renaissance

Sweeping 80% of Global Orders
Price Exceeds 330 Billion Won Per Unit

South Korea's shipbuilding industry is capturing more than 80% of the global orders for liquefied natural gas (LNG) carriers amid the energy crisis and increasing demand for eco-friendly vessels. There is a rosy outlook that South Korea's shipbuilding industry can enter another boom period by leading with eco-friendly ships.

According to Clarkson Research, a British shipbuilding and shipping market analysis firm, the price of LNG carriers with a capacity of 174,000 cubic meters or more reached an all-time high of $240 million (approximately 332 billion KRW) on the 13th. This is twice the price of ultra-large crude carriers (VLCCs), which have suffered from falling prices and demand as renewable energy has become mainstream, priced at $120 million (approximately 164.9 billion KRW).

LNG carriers are the most expensive among all ship types, and their recent price increases are the most prominent. The popularity of these LNG carriers is largely due to the global decarbonization trend and the impact of the Russia-Ukraine war. These two factors have increased demand for eco-friendly energy such as LNG, leading to more shipowners seeking LNG carriers.

The number of LNG carriers ordered worldwide from January to last month is the largest ever. A total of 115 vessels (9,619,480 CGT) were ordered, with South Korea securing 94 of them, representing a high market share of 82%. The global average annual LNG carrier orders over the past 20 years have been only 39 vessels. Notably, this year's order volume accounts for 20% of the LNG carriers currently in operation worldwide (658 vessels).

Although not included in last month's statistics, South Korean shipbuilders have continued to secure trillion-KRW level contracts this month alone. On the 6th, Daewoo Shipbuilding & Marine Engineering announced that it had secured an order for seven LNG carriers from a shipowner in the African region for 2.0368 trillion KRW. These vessels are scheduled to be delivered to the shipowner by February 2026. Daewoo Shipbuilding & Marine Engineering has secured $8.17 billion (approximately 11.2165 trillion KRW) so far, achieving 92% of its annual target.

On the same day, Samsung Heavy Industries also announced that it had secured orders for four LNG carriers?two each from shipowners in Bermuda and the African region. The total order value for these four vessels is approximately 1.1651 trillion KRW. The ships are scheduled to be delivered sequentially by September 2025. With this contract, Samsung Heavy Industries has secured a total of 37 vessels worth $7.2 billion (approximately 9.8892 trillion KRW) this year, achieving 82% of its annual target.

Korea Shipbuilding & Offshore Engineering already exceeded its annual target of $17.44 billion (approximately 23.9538 trillion KRW) in July, becoming the first among the three major domestic shipbuilders to meet its goal. Professor Jang Hyun Lee of Inha University's Department of Naval Architecture and Ocean Engineering said, "The prices of ships that South Korea's shipbuilding industry focuses on, such as LNG carriers, are continuously rising, so profitability improvement is expected." He added, "During this boom, it is an opportunity to solve structural problems by improving technology development and wage structures."

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