Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Heavy Industries (HHI) Group’s intermediate holding company controlling the Group’s shipbuilding units, won orders to build six new ships worth KRW 1 trillion in total.
KSOE announced on December 16 that it recently signed contracts with shipping companies based in Europe, Bermuda, and Asia to construct four 174,000m³ LNG carriers and two 318,000-ton very large crude oil carriers (VLCCs).
Enhancing operational economics
The aggregate contract amount is valued at around KRW 1 trillion. Each of the four new LNG carriers will have a length of 299m, a breadth of 46.4m, and a depth of 26.5m. With three to be built by HHI and one by Hyundai Samho Heavy Industries (HSHI), all four ships will be chartered to Shell, a global energy company, by the second half of 2024.
These LNG carriers will be equipped with a dual-fuel X-DF engine and the selective catalytic reduction (SCR) technology to significantly reduce Nitrogen oxides (NOx) emissions, while also featuring an air lubrication system, LNG re-liquefaction system, and shaft generator to further enhance operational economics.
These LNG carriers will be equipped with a dual-fuel X-DF engine and the selective catalytic reduction (SCR) technology to significantly reduce Nitrogen oxides (NOx) emissions, while also featuring an air lubrication system, LNG re-liquefaction system, and shaft generator to further enhance operational economics.
Shipping market trends
Global shipbuilding orders slowed down due to the prolonged COVID-19 pandemic According to the September 2020 issue of ‘Clarksons Forecast Club’ published by Clarksons Research, which analyses the shipbuilding and shipping market trends, 100 LNG carriers will be ordered between this year and next year.
This year, global shipbuilding orders slowed down due to the prolonged COVID-19 pandemic. However, as orders for large LNG projects are now bottoming out and showing signs of recovery, shipbuilders’ expectations for additional orders are rising.
This year, global shipbuilding orders slowed down due to the prolonged COVID-19 pandemic. However, as orders for large LNG projects are now bottoming out and showing signs of recovery, shipbuilders’ expectations for additional orders are rising.
International environmental regulations
Orders for other types of ships also followed. KSOE recently won an order to build two VLCCs. The vessels, to be built by HSHI, will be equipped with a Sulphur oxides (SOx) scrubber system for compliance with the international environmental regulations, scheduled for sequential delivery to the shipowner starting from the first half of 2022.
"We have secured orders for 12 LNG carriers and 27 VLCCs this year, based on our technological advance and rich shipbuilding experience," said an official of KSOE. "As we are currently negotiating the construction of various types of ships with clients, winning of additional orders is expected."
