Samsung Heavy Industries Secures Additional Order for 2 LNG Carriers... 1.5 Trillion KRW Contract in Two Days

"LNG Carrier Price Increase Trend Likely to Continue for the Time Being"

A liquefied natural gas (LNG) carrier built by Samsung Heavy Industries. (Photo by Samsung Heavy Industries)

[Asia Economy Reporter Moon Chaeseok] Samsung Heavy Industries announced on the 18th that it has secured orders for two liquefied natural gas (LNG) carriers from an Oceania region shipping company for 591.3 billion won (230.7 million dollars per vessel). Following the order of three LNG carriers worth 860 billion won the previous day, Samsung Heavy Industries added two more vessels on the same day, achieving a total of 1.45 trillion won in orders over two days.

Samsung Heavy Industries' cumulative orders this year amount to 19 vessels (10 LNG carriers, 9 container ships), totaling 3.3 billion dollars (approximately 4.191 trillion won). This represents 38% of the annual order target of 8.8 billion dollars (11.176 trillion won).

A Samsung Heavy Industries official stated, "Currently, the LNG carrier market is being further stimulated by new demand due to the global increase in LNG production, replacement demand driven by the International Maritime Organization (IMO) environmental regulations, and expectations of expanded LNG maritime cargo volume due to the Russia-Ukraine war. Moreover, since shipbuilders' docks (construction slots) are also limited, the price increase trend for LNG carriers is expected to continue for the time being."

According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, the newbuilding price of a 174,000㎥ LNG carrier rose about 20% from 186 million dollars (approximately 236.2 billion won) at the end of 2020 to 224 million dollars (approximately 284.5 billion won) last month.