Daewoo Shipbuilding & Marine Engineering Exceeds Order Target with Four LNG Carrier Orders

74% of Contracted Ships Are Dual-Fuel Propulsion Vessels

[Asia Economy Reporter Hwang Yoon-joo] Daewoo Shipbuilding & Marine Engineering (DSME) has exceeded its order target by securing orders for four LNG carriers.

DSME announced on the 14th that it had received orders for four LNG carriers from shipowners in the Asian region. These vessels will be built at the Okpo Shipyard and are scheduled to be delivered to the shipowners by the second half of 2024.

This is the first time since 2014, when orders sharply declined due to a rapid downturn in the shipbuilding market, that DSME has achieved its order target. Notably, it secured over $8 billion in orders for the first time since the $14.9 billion orders in 2014, signaling a positive outlook for workload acquisition. Currently, the order backlog stands at approximately $22.2 billion, securing more than two years' worth of work.

The LNG carriers ordered this time are large 174,000㎥ class vessels equipped with DSME's proud dual-fuel propulsion engine (ME-GA) and an advanced reliquefaction system (Gas Management System). These environmentally friendly, high-efficiency ships significantly reduce the atmospheric release of methane emissions, a major greenhouse gas, thus complying with strengthened greenhouse gas emission regulations.

In particular, the application of the ME-GA engine (low-pressure dual-fuel propulsion engine) on these vessels, along with the ME-GI engine (high-pressure dual-fuel propulsion engine) which DSME currently applies as its main engine, provides shipowners with more options, which is expected to be advantageous in future order competitions.

A DSME official stated, "This order once again proves DSME's overwhelming LNG carrier construction technology," adding, "Having exceeded the order target early, we will do our best to secure additional workload."

This year, DSME has secured a total of 46 vessels and offshore plants worth approximately $8.04 billion, including 16 container ships, 11 ultra-large crude carriers, 9 ultra-large LPG carriers, 6 LNG carriers, 1 WTIV, 1 submarine, and 2 offshore plants, achieving about 104% of this year's target of $7.7 billion.