Korea Shipbuilding & Offshore Engineering, Key Player in Regaining No.1 Order Position in South Korea

First LNG Carrier Order Among Korea's Top 3 Shipbuilders This Year
Securing 4 More Contracts in Second Half to Drive Korea's Order Volume

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering (KSOE), the first among the three major domestic shipbuilders to secure orders for liquefied natural gas (LNG) carriers this year, is driving Korea's order volume by securing an additional four LNG carriers.

According to the shipbuilding industry on the 17th, KSOE signed a contract worth 440 billion KRW to build two LNG carriers with Korea Shipping. Including the LNG carrier construction contracts signed last month with two overseas shipowners, the total reaches six vessels.

The newly ordered vessels are 174,000㎥ class and will be built at Hyundai Heavy Industries in Ulsan, scheduled for delivery in the second half of 2023. They will then be chartered to Shell.

KSOE has secured orders for 13 vessels worth 1.42 billion USD in the second half of the year, including six LNG carriers, six PC vessels, and one passenger ship (RO-PAX).

Thanks to KSOE's strong order performance, Korea's domestic order volume recorded 500,000 CGT (Compensated Gross Tonnage) as of July, surpassing China to claim the world's number one position. This accounts for 74% of the global shipbuilding orders totaling 680,000 CGT.

This is the first time this year that Korea has ranked first in global ship orders. China had held the top spot throughout the first half of the year. However, last month China's order volume dropped to 140,000 CGT (20%), falling to second place. Japan was ranked third with 30,000 CGT.

The global cumulative order volume from January to July this year was 6.61 million CGT, only 40% of last year's level, indicating a severe slump in orders. However, with large LNG carrier orders expected from Mozambique, Russia, and other countries, the shipbuilding industry anticipates a gradual recovery in the market centered on LNG carriers in the second half of the year.