Samsung Heavy Industries Wins Contract For Two LNG Carriers Worth USD 370 Million

Samsung Heavy Industries (“SHI”) revealed on April 4th that a contract for two 174,000㎥ LNG carriers on BOD approval term. The price is 184 million USD per vessel(around KRW 195 billion). The latest LNGCs would be delivered in July and October 2020. The contract comes with an option for two.

The LNG carriers would be equipped with Mark-Ⅲ Flex type containment system with re-liquefaction to lower BOG. The vessels are loaded with fuel-saving technologies customized for the owner’s operational needs.

The vessels are powered by X-DF, the trending duel-fuel engine that can use both natural gas and diesel as fuel. X-DF is highly efficient for it propels with its own power. The engine characterized by low-pressure system assures safe operation for owners. Hong Kong’s CLSA Securities said in a recent report that X-DF’s popularity is growing in LNG carrier engine market this year.

According to Clarksons Research, gas carrier and containership newbuilding orders are set to increase with a steady global economy and seaborne trade growth. Strong LNG carrier spot rates and increasing usage of LNG as fuel as well as gas demands in power generation all point at strong LNG carrier newbuilding market for years to come. Including 37 this year, the total of 194 LNG carriers are to be ordered within the next five years.

An SHI representative stressed, “EIA stated that US’s natural gas production is to continue growth with export to Asia, especially China, in mind.” He added, “SHI would continue leadership in LNGC newbuilding market with technological edge.”

Press Release: samsungshi.com