DSME to Build Up to Six LNG Carriers for US Owner

Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has received an order to build two liquefied natural gas (LNG) carriers for an American owner.

Under the deal, signed with the unnamed company, the new vessels would be delivered from the shipyard in the first half of 2021.

The shipbuilding contract is worth KRW 412.1 billion (USD 370.1 million) and includes options for four more units, which, if exercised, would bring the value of the agreement to around USD 1.1 billion. The company informed that the deal on the options would be finalized in 2019.

DSME is to construct the 174,000 cbm units at its Okpo shipyard. The new LNG carriers would be fitted with the M-type, electronically controlled, gas injection (MEGI) engines and full re-liquefaction systems (FRS) to increase fuel efficiency by 30% compared to conventional LNG carriers.

“The situation has improved recently due to a surge in LNG carrier freight rates, and this will be a great boost for DSME,” a company official said.

DSME has won about USD 5.84 billion worth of ship orders so far in 2018, including 14 LNG carriers, 16 large-sized crude oil carriers, 16 super large containerships, and 4 special ships.