Major Korean Shipbuilders Going for LNG-FSRU in Earnest

Korean shipbuilders are striving to win more contracts for LNG floating storage and regasification units (LNG-FSRU). This type of marine vessel can be built only by the three major Korean shipbuilders for now and they are expected to monopolize new deals across the world for a while. 

According to industry sources, global oil company Shell is planning to place an order for a 170,000 m³-capacity LNG-FSRU for energy supply in the Philippines. “It is likely that the contractor will be selected through just one round of bidding, allowing for the demand from the client,” said an industry insider. The three largest Korean shipbuilders already submitted their proposals for the purpose in January. The unit is scheduled to be delivered in 2017. 

At present, it is Hyundai Heavy Industries that is considered to have the most advanced technological strength in this field. The company succeeded in building the world’s first LNG-FSRU last month. In the meantime, Samsung Heavy Industries obtained a deal from BW, a global leading shipping group, in December last year in addition to another one won in January 2013. Daewoo Shipbuilding & Marine Engineering clinched the world’s biggest LNG-FSRU deal last year, too. 

“LNG-FSRU will be a new growth driver for the shipbuilding industry of Korea,” said an industry expert, adding, “The competition is sure to heat up, since only the Korean companies have the ability to build the units.”