On June 27, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced a significant milestone in the shipbuilding industry by securing a construction contract for four LNG carriers with a shipping company based in Oceania. The contract is valued at approximately 1.396 trillion won (approximately $997 million), marking a substantial achievement for the South Korean shipbuilder amidst growing global demand for liquefied natural gas (LNG) transportation.
The LNG carriers, each valued at about 349 billion won, are set to be constructed at HD Hyundai Samho and are scheduled for sequential delivery by the second half of 2028. This order represents the first LNG carrier contract secured by a domestic shipbuilder in about three months since HD KSOE signed a similar deal with an Asian shipping company in early April for one LNG carrier worth 385.3 billion won.
South Korea’s shipbuilding industry is renowned for its advanced technology and high-quality production capabilities, making it one of the leading nations in this sector alongside China and Japan. Major players like HD Hyundai Samho, Samsung Heavy Industries, and Hanwha Ocean continue to dominate the market, particularly in constructing high-value vessels such as LNG carriers. These specialized ships require sophisticated technology to transport liquefied natural gas safely and efficiently across global waters.
The demand for LNG carriers is closely tied to the global energy transition, where countries are increasingly seeking cleaner energy sources compared to traditional coal and oil. As nations aim to reduce carbon emissions, LNG serves as a transitional fuel that can bridge the gap between fossil fuels and renewable energy sources. This shift has led to heightened interest in LNG transportation solutions, particularly from regions like Asia and Europe.
Oceania plays a pivotal role in the global LNG market, with Australia being one of the largest exporters of LNG worldwide. The involvement of an Oceania-based shipping company underscores the region’s significance in driving demand for new LNG carriers. Geopolitical events and energy security concerns further influence this demand, as countries strive to ensure stable energy supplies amidst potential disruptions.
HD KSOE has made impressive strides this year, securing orders for a total of 76 vessels worth $10.5 billion. This achievement accounts for 58.2% of its annual order target of $18.05 billion. The diverse portfolio includes five LNG carriers, six LNG bunkering vessels, eight LPG and ammonia carriers, two ethane carriers, 44 container ships, and 11 tankers.
Source: BusinessKorea