Contracts Signed with 4 Overseas Shipping Companies for 2 Ethane Carriers, 3 LPG Ships, and 2 PC Ships
"Accelerating Additional Orders with Extensive Construction Experience and Advanced Technology"
[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the intermediate holding company for shipbuilding under Hyundai Heavy Industries Group, has successfully secured orders for seven vessels worth a total of 566 billion KRW.
Korea Shipbuilding & Offshore Engineering recently announced on the 1st that it signed construction contracts with shipping companies based in Asia, Europe, and Africa for two 98,000 cubic meter (㎥) Very Large Ethane Carriers (VLECs), two 91,000 cubic meter (㎥) Very Large LPG Carriers, one 23,000 cubic meter (㎥) small LPG Carrier, and two 50,000-ton PC vessels.
The ethane carriers ordered this time are the first to be commissioned worldwide this year, measuring 230 meters in length, 36.6 meters in width, and 22.8 meters in height. They will be built at Hyundai Heavy Industries in Ulsan and are scheduled to be delivered sequentially to the shipowners starting from the fourth quarter of 2022.
Ethane carriers are high value-added vessels that transport liquefied ethane at a stable temperature of minus 94 degrees Celsius. Like LNG carriers, they require advanced technology and expertise. Including these vessels, Korea Shipbuilding & Offshore Engineering has secured orders for a total of seven Very Large Ethane Carriers to date.
Ethane is an essential raw material for producing ethylene (C2H4), often called the "rice of petrochemicals." According to The Business Research Company, a global market research firm, the global ethylene market size is expected to grow at an average annual rate of 4.8%, from 222.1 billion USD in 2019 to 267.7 billion USD by 2023.
Order news has continued in other vessel types as well. The two Very Large LPG Carriers ordered this time will be built at Hyundai Heavy Industries and are scheduled for delivery starting in the second half of 2022. The small LPG carrier and PC vessels will be constructed at Hyundai Mipo Dockyard and are expected to be delivered to the shipowners starting from the second half and first half of 2022, respectively.
The Very Large LPG Carriers are equipped with LPG dual-fuel propulsion engines, enabling compliance with the International Maritime Organization (IMO)'s strengthened sulfur oxide emission regulations without the need for scrubbers, which are exhaust gas reduction devices.
A Korea Shipbuilding & Offshore Engineering official stated, "As expectations for global economic recovery rise, including increases in shipping freight rates, inquiries across various vessel types continue. We will accelerate our order acquisition efforts based on our abundant construction experience and advanced technological capabilities."
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