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South Korea’s Shipbuilders are building LNG carriers worth $2.35 billion.

The world’s largest shipbuilders are tapping into the growing demand for LNG carriers. 

Samsung Heavy Industries (SHI) and South Korea’s Daewoo Shipbuilding and Marine Engineering Co (DSME) today announced a consolidated order for 11 LNG carriers valued at approximately $2.35 billion. 

DSME announced Tuesday that it has won an order for seven LNG carriers from an unspecified company based in Africa. Under the contract worth 2.036 billion KRW ($1.8 billion), The shipbuilder is expected to deliver the ships in February 2027. 

More details of the order were not disclosed. DSME orders reached 26 ships worth $6.3 billion in August 2022 which is 72.2% of the company’s target. 

According to the DSME, all of the new ships have dual-fuel specifications. The latest contracts help DSME fulfill its 2022 order target by 92%. 

Separately, SHI disclosed in two stock market filings that it had won orders for a total of four LNG carriers. 

 

lng carrier

LNG Market Growth

Samsung has indicated that two LNG carriers have been booked by ship owners in the Africa region. The ships are expected to be delivered in 2025 and are worth 582 billion KRW (423.7 million USD). 


Another pair of LNG carriers was contracted by a shipowner in the Bermuda region for a total value of KRW 583 billion (424.4million USD). They are also expected to ship in 2025. 


SHI has achieved 82% of its target for this year, touching the figure of $8.8 billion. 

The LNG market is going through a “perfect storm,” as Panos Mitrou, Lloyd’s Register’s global head of gas, explains. 

The pressures of the energy transition combined with the Ukraine crisis have led to a significant increase in investments in liquefaction plants and an increased desire to expand Qatari gas production. Import demand for LNG continues to grow as countries seek alternatives to Russian imports, which is boosting demand for LNG carriers. 

The LNG carrier market is expected to grow at a compound annual growth rate, or CAGR, of approximately 3.6% from 2022 to 2027

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