Hanwha Ocean wins 540 billion KRW order for 1 LNG-FSRU vessel... "Selective orders effective"

High-Value Floating Storage and Regasification Facilities

Hanwha Ocean has surpassed last year's order amount by securing high value-added product orders through a profitability-focused selective order strategy.

Hanwha Ocean announced on the 2nd that it received an order worth 545.4 billion KRW for one LNG Floating Storage Regasification Unit (FSRU) from an Asian shipowner.

LNG-FSRUs are considered representative high value-added products because they can supply natural gas without large-scale facility investments such as onshore terminal construction, making it possible to supply natural gas without investment in areas where natural gas demand temporarily surges or where onshore facility construction is difficult.

While the market price for a general LNG carrier is around 265 million USD, an LNG-FSRU costs over 400 million USD per unit, approximately 150 million USD more expensive than an LNG carrier.

Hanwha Ocean is implementing a profitability-focused selective order strategy. In 2011, it successfully secured and delivered the world's largest LNG-FSRU at the time, with a capacity of 173,400㎥, and in December 2013, it again broke the world record by securing and successfully delivering an LNG-FSRU with a capacity of 263,000㎥.

According to Clarkson Research, out of the 41 LNG-FSRU/RVs currently operating worldwide, 12 were built by Hanwha Ocean, recording the highest global market share of about 30%.

A Hanwha Ocean official explained, "So far, we have secured orders worth about 6.1 billion USD for 31 vessels, including 17 LNG carriers and LNG-FSRUs, 7 VLCCs, 2 VLACs, 1 VLGC, 1 offshore unit, and 3 special vessels, surpassing last year's order amount of 3.52 billion USD."