Samsung Heavy Industries announced on Oct. 2 that it has signed a contract with an Asian client to build two liquefied natural gas (LNG) carriers, worth about 678.3 billion won. The two vessels will be delivered to the client by the end of April 2027.

Including the latest deal, Samsung Heavy Industries has received orders for 24 vessels totaling approximately US$5.4 billion so far this year. They include 21 LNG carriers, two very large ammonia carriers (VLACs) and one shuttle tanker. This volume accounts for 56 percent of this year’s order target of $9.7 billion. The shipbuilder’s current order backlog stands at $31.9 billion, providing more than three years of stable work.

As of the end of August, the Newbuilding Index stood at 189.2, the highest since September 2008, according to Clarkson Research, a U.K.-based shipbuilding and shipping market analysis organization. Considering growing demand for LNG in the mid- to long-term and LNG projects under development, Samsung Heavy projects newbuilding orders for LNG carriers will remain steady at around 70 ships per year.

“In addition to steadily incoming LNG carrier orders, new orders are expected mainly for floating liquefied natural gas (FLNG) facilities where Samsung Heavy Industries has overwhelming competitiveness,” said a company official. “We will also expand our presence in future new product markets by steadily developing eco-friendly technologies.”
Source: Business Korea