Samsung Heavy Industries has reached about 90 percent of its annual order target by signing a contract to build LNG carriers for US$1.5 billion.
Samsung Heavy Industries announced on Nov. 25 that it has signed a conditional contract with a Eurasian ship owner. The contract will run until September 2022. "Details of the contract cannot be disclosed in accordance with a confidentiality agreement signed with the client," said an official of Samsung Heavy Industries
Industry watchers assume that the project won by Samsung Heavy Industries is the second Yamal project of Russia. The project is aimed at developing a land gas field on the Yamal Peninsula in northern Russia with an investment of approximately US$21.2 billion. Samsung Heavy Industries was selected as a technical partner for the project in September and has been in charge of designing an icebreaking LNG carrier that can safely transport LNG while breaking ice up to 2.1 meters thick.
"After Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) left the bidding race due to demanding contract conditions, many shipbuilding industry experts predicted that Samsung Heavy Industries will land the project on its own," said an industry insider. “It seems that Samsung Heavy Industries won an order for five icebreaking LNG carriers.”
The contract pushed up Samsung Heavy Industries' total orders this year to US$6.9 billion, up from US$6.3billion of last year and 88 percent of this year's order target of US$8.8 billion.