KSOE starts 2023 with a bang, inks $195 mln VLGC contract

South Korean shipbuilding major Korea Shipbuilding & Offshore Engineering (KSOE) is off to a strong start to the year revealing a third shipbuilding deal this week.

Illustration VLGC; Image credit KSOE

The company said in a stock exchange filing that it had won a contract for the construction of two very large gas carriers (VLGCs). The deal is worth KRW 240.8 billion ($ 195.4 million).

The two LPG carriers are set for delivery in 2026, according to KSOE. The shipowner behind the order is an undisclosed shipping company from Africa.

According to Yonhap, Hyundai Heavy Industries will build the vessels, which will also be able to carry ammonia.

The agreement is being reported on the back of a contract announced by the shipbuilder on Thursday, January 19, for the construction of two LNG carriers. The $550 million order was received by one of its three affiliates, Hyundai Samho Heavy Industries (HSHI). 

At the beginning of the week, KSOE revealed a $748 million deal for the construction of three LNG carriers.

KSOE’s unit Hyundai Heavy Industries will construct the 200,000 cbm LNG vessels for an undisclosed shipowner from Oceania. The ships are slated for delivery in stages by November 2026.

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Korea’s five major companies all surpassed their initial order targets for 2022. Korea Shipbuilding & Offshore Engineering (KSOE) won $24.0 billion (197 vessels) worth of orders, 38 percent more than its target ($17.4 billion).

Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) exceeded targets by 7 percent and 16 percent, respectively, winning $9.4 billion (49 vessels) and $10.4 billion (46 vessels) worth of orders.

The country’s builders won 70 percent (10.1 million CGT) of global orders (14.5 million CGT) for large-scale LNG carriers in a bumper year for the sector which saw a 131 pct rise in orders resulting in 14.5 million CGT. The ordering spree was triggered by heightened demand for LNG tonnage stemming from energy security tensions instigated by Russia’s war in Ukraine.

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