LNG carrier

DSME rides the LNG demand wave with two more orders in the bag

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has won a contract for the construction of two LNG carriers worth around $500 million (KRW 710 billion).

LNG carrier/Illustration; Image credit: DSME

Each vessel has secured a price of $250 million, a record vaue for local shipbuilders, Yonhap reports citing DSME.

The LNG carriers have been ordered by an undisclosed owner based in the Americas.

The duo is scheduled for delivery by the end of 2026, according to DSME.

The latest order brings DSME’s LNG carrier tally to 36 construction projects secured this year.

The company has been on a winning streak this year having surpassed its yearly target of $8.9 billion worth of orders currently standing at around $9.9 billion. The order intake has been largely driven by strong demand for LNG carriers.

According to Clarksons Research, a total of 128 LNG carriers were ordered year-to-date, which is a record high, with delivery dates stretching into 2027. Compared to 2021, only 86 LNG carriers were contracted.

The demand for new tonnage comes ahead of the planned start-up of  116 mtpa of liquefaction capacity across 2025 to 2026 on a global level, Clarksons’ data shows. Investment in LNG infrastructure is accelerating, particularly in Europe as the continent looks to move away from Russian gas and diversify its energy portfolio to ensure energy security.

Clarkson expects LNG shipments to spike 65% over the decade, pushing trade volumes to 630m tonnes by 2030, up from 380m tonnes last year.

DSME has been offered a lifeline from compatriot Hanwha Group in the form of a $1.4 billion takeover deal.

The acquisition has been cleared as there were no other bids submitted by October 17th, DSME said.

Following a six-week due diligence process, a final contract is expected to be signed. Once the contract is finalized, KDB will retain 28.2 percent stake in the shipbuilder.

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