The Three Major Shipbuilders Thrive on Energy Carrier Orders

The focus of orders for the three major Korean shipbuilders is shifting toward energy carriers such as LNG and ammonia vessels. With orders now concentrated on LNG and ammonia transport and supply facilities, a clear restructuring of demand by vessel type is taking place.

From the left in the photo, the ultra-large ammonia carrier built by Hanwha Ocean, and the FSRU built by Samsung Heavy Industries. Hanwha Ocean·Samsung Heavy Industries

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According to the shipbuilding industry on May 6, Samsung Heavy Industries, Hanwha Ocean, and HD Korea Shipbuilding & Offshore Engineering each announced new shipbuilding contracts worth a total of 1.5 trillion won on May 4.

Samsung Heavy Industries secured an order for one LNG-FSRU (Floating Storage and Regasification Unit) from an Asian shipowner, valued at 484.8 billion won. The FSRU, often referred to as a "floating LNG terminal," is a facility that converts liquefied natural gas back into a gaseous state for supply. Compared to onshore terminals, FSRUs have shorter construction periods, allowing for rapid energy infrastructure development, and are gaining attention as a means to meet increased electricity demand driven by the spread of artificial intelligence (AI) industries.

The company explained that it secured competitiveness in orders by applying its independently developed regasification system (S-Regas). Its comprehensive LNG value chain lineup, spanning FLNG (production, liquefaction, and offloading), LNG carriers, and FSRUs, is also seen as a strength. So far this year, Samsung Heavy Industries has won orders for a total of 17 vessels, including one LNG-FSRU, amounting to 3.4 billion dollars (approximately 5 trillion won).

Hanwha Ocean won an order for three very large ammonia carriers (VLACs) from an African shipowner, valued at 507.4 billion won. Ammonia is attracting attention as a next-generation fuel that does not emit carbon, resulting in rapidly increasing demand for related carriers.

Including this contract, Hanwha Ocean has now secured a total of ten ammonia carriers and is accelerating its efforts to enhance technological competitiveness, having obtained Approval in Principle (AIP) from both Bureau Veritas (BV) of France and Lloyd’s Register (LR) of the United Kingdom. Its order performance this year totals 18 vessels, including ten very large crude carriers (VLCCs) and four LNG carriers, amounting to 3.2 billion dollars (approximately 5 trillion won).

HD Korea Shipbuilding & Offshore Engineering signed a contract with KSS Line for the construction of three very large gas carriers (VLGCs). The order is valued at 504.8 billion won, and these vessels will be built by HD Hyundai Heavy Industries and delivered by the second half of 2029.

With this contract, HD Korea Shipbuilding & Offshore Engineering has secured orders for a total of 86 vessels so far this year, worth 9.35 billion dollars (approximately 14 trillion won), achieving about 40% of its annual target. By vessel type, orders remain focused on energy and logistics, including LNG carriers, container ships, and LPG and ammonia carriers.

Industry insiders expect that the issuance of high value-added vessel orders will continue amid the global restructuring of energy supply chains and the transition to eco-friendly fuels. A shipbuilding industry source said, "Demand for energy transport and supply vessels, including LNG and ammonia carriers, is increasing simultaneously," adding, "The ability to respond to eco-friendly fuels and infrastructure has become a key factor in determining competitiveness in securing orders."

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