Samsung Heavy Industries Secures 3.9 Trillion KRW Order Amid Large-Scale Qatar LNG Carrier Orders

LNG carrier built by Samsung Heavy Industries. Photo by Samsung Heavy Industries

[Asia Economy Reporter Donghoon Jeong] Samsung Heavy Industries has hit a 'jackpot' with orders worth 3.9 trillion won.

On the 22nd, Samsung Heavy Industries announced that it had received an order for 12 LNG carriers with a capacity of 174,000㎥ each from a shipowner in the Bermuda region.

The total order amount is 3.331 trillion won. This is the largest single shipbuilding contract in the history of the Korean shipbuilding industry. In March last year, Samsung Heavy Industries also set a record by securing an order for 20 container ships worth 2.8 trillion won.

Samsung Heavy Industries did not disclose whether this contract is part of a large-scale LNG carrier order project originating from Qatar. However, according to industry sources, this order is known to be part of a contract for over 100 shipbuilding slots signed by the Qatari government with the domestic Big 3 in 2020. A slot contract refers to pre-booking a dock for new shipbuilding.

Qatar Petroleum (QP), the state-owned oil company of Qatar, the world's largest LNG producer, signed a contract in June 2020 with Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and other domestic Big 3 shipbuilders for more than 100 LNG carrier building slots.

On the same day, Samsung Heavy Industries additionally contracted with a shipowner in the African region for 2 LNG carriers, achieving a total order of 14 LNG carriers worth 3.9 trillion won. This amount exceeds more than half (59%) of Samsung Heavy Industries' total sales last year.

With this contract, Samsung Heavy Industries has secured 33 ships worth 6.3 billion dollars so far this year, achieving 72% of its annual order target of 8.8 billion dollars. The total number of LNG carriers ordered this year reaches 24.

A Samsung Heavy Industries official said, "Due to environmental issues and geopolitical problems, the favorable market conditions for LNG carriers are expected to continue," adding, "Following last year, achieving the order target this year is expected to be smooth."