Shift to LNG-fueled Vessels
The Big 3 Korean shipbuilders -- the Hyundai Heavy Industries Group, Daewoo Shipbuilding & Marine Engineering (DSME), and Samsung Heavy Industries -- are winning a growing number of orders for LNG-fueled vessels. They are already well recognized for their technological prowess in building LNG carriers.
Hyundai Steel recently ordered two LNG-fueled bulk carriers to Hyundai Samho Heavy Industries under Hyundai Heavy Industries Group through a charterer. In September, Hyundai Samho Heavy Industries also won an order for two 180,000-ton LNG-powered bulk carriers from POSCO through the same charter company.
In addition, Hyundai Heavy Industries Group is likely to win an order for 14 LNG-fueled mammoth-sized VLCCs from Capital Marine Time of Greece. A letter of intent (LOI) for the project was signed in September. The total contract is reportedly worth US$1.5 billion, with each vessel costing US$110 million. If Hyundai Heavy Industries Group wins the contract, it will deliver the vessels by 2021.
Orders for LNG-powered carriers are expected to grow in line with the new environmental regulations of the International Maritime Organization (IMO) that will be introduced beginning next year.
Hyundai Heavy Industries Group has won 30 LNG-powered vessels by September of this year, becoming the industry leader in this field. Last year, it delivered the world's first 114,000-ton LNG-fueled crude carrier.
Samsung Heavy Industries also announced that it won 10 Aframax tankers in August.
Orders for LNG carriers declined this year, but market watchers say that about 100 LNG carriers are likely to be ordered next year as Qatar, Mozambique and Nigeria will launch big LNG carrier development projects.