Global shipbuilding orders fell to nearly half the level of a year ago during the January–May period, marking the lowest volume for the same timeframe since 2021. The sharp drop has raised concerns in some quarters that the recent momentum in the shipbuilding industry may slow sooner than expected.

Still, the dry spell in new orders comes as liquefied natural gas (LNG) projects are launching across the globe, fueling expectations that South Korean shipyards could see renewed growth. Since Russia’s invasion of Ukraine, energy security has emerged as a pressing global priority, prompting many countries to expand power generation efforts and elevating the importance of LNG as an energy source.

As global electricity demand has surged, many nations have moved to reduce their reliance on traditional fossil fuels, significantly ramping up LNG consumption. Industry experts say this shift has created a more favorable environment for South Korean shipbuilders, who are widely seen as more technologically advanced than their Chinese rivals, whose strengths lie in mass production.

Many in the South Korean shipbuilding sector point to the 2020–2023 Qatar LNG project as a benchmark. That initiative, led by Qatar—the world’s top LNG exporter—sought to boost its annual LNG production capacity from 77 million tons in 2020 to more than 126 million tons by 2027. South Korea’s three major shipbuilders secured 98 of the 128 LNG carriers ordered by Qatar during that period, effectively dominating the contract awards.
Source: The Chosun Daily