Report: investment company plans 20 LNG carriers order at South Korean shipyards
An order for 20 liquefied natural gas carriers could be placed at South Korean shipyards from CBI Energy and Chemical, an investment company controlled by Australian and Canadian investors.
The order, that would initially be for 10 carriers with an option for further 10 vessels, could be worth around US$3.8 billion, and the company told Reuters it is eyeing purchase of floating liquefied natural gas production and import units as it plans to develop its business in Africa and Asia.
The company intends to take advantage of the current market conditions that have seen the shipbuilding costs drop. Low LNG prices have also spurred the demand for the fuel.
CBI E&C’s plan to develop its business in Asia and Africa includes natural gas extraction, LNG facilities such as liquefaction plants, a distribution network and retail gas stations. Additionally, the company’s plan includes pipelines, marine transportation logistics, rail transport, power generation and chemical plants.
Additionally, the company’s plan includes pipelines, marine transportation logistics, rail transport, power generation and chemical plants.
It is reported that Korea Offshore and Ship Technology has been contracted to engage South Korean shipbuilders for the project, and the order could be split between a number of shipyards.
KOST expects the contracts for carriers with a capacity between 120,000-cbm to 170,000-cbm could be signed over a period of three months following the completion of detailed preparations.
The first LNG carrier is expected to be delivered in 2019, with the remaining carriers to be delivered in three-month windows.