Korea Shipbuilding & Offshore Engineering Wins Order for One LNG Vaporization Specialized Vessel Worth 475.7 Billion KRW

FSRU Inquiries Continue Due to LNG Supply Chain Issues... Additional Orders Expected

The 170,000 m³ class Floating Storage Regasification Unit (LNG FSRU) built by Hyundai Heavy Industries and delivered in 2020. Photo by Korea Shipbuilding & Offshore Engineering

[Asia Economy Reporter Choi Seoyoon] Korea Shipbuilding & Offshore Engineering, the intermediate holding company for shipbuilding under Hyundai Heavy Industries Group, has succeeded in securing an order for a Floating Liquefied Natural Gas Storage and Regasification Unit (LNG-FSRU).

Korea Shipbuilding & Offshore Engineering announced on the 5th that it recently signed a construction contract worth 475.7 billion KRW for one 170,000 m³-class LNG-FSRU with the US company Accelerate Energy.

The LNG-FSRU ordered this time will be built at Hyundai Heavy Industries in Ulsan and is scheduled to be delivered to the shipowner by 2026.

An FSRU is a special vessel that vaporizes LNG at sea and supplies it directly to land. Korea Shipbuilding & Offshore Engineering is the first in the world to secure such an order this year.

Interest in FSRUs is increasing as LNG supply and demand issues within European countries have become serious due to the outbreak of the Russia-Ukraine war.

According to Clarkson Research, a UK-based shipbuilding and offshore market analysis firm, about 12% of the world's LNG imports are supplied through FSRUs, and this is expected to continue growing.

A representative from Korea Shipbuilding & Offshore Engineering said, "Due to recent LNG supply chain issues originating from Europe, inquiries about LNG-FSRUs are ongoing, so additional orders are expected in the future."

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