Samsung Heavy lands $1.08 billion deal for five LNG carriers

South Korean shipbuilder Samsung Heavy Industries (SHI) has received orders for the construction of five liquefied natural gas (LNG) carriers.

Illustration; Image Courtesy: Samsung Heavy Industries

On 23 November, the South Korean shipbuilder signed a shipbuilding contract with an undisclosed shipowner in Oceania.

The order is valued at KRW 1.46 trillion ($1.08 billion), SHI revealed in its stock exchange filing.

Under the terms of the deal, the LNG carriers are scheduled to be delivered by the end of June 2027.

With the newest order. the shipyard has obtained $9.2 billion worth of orders in total so far this year, surpassing its yearly order target of $8.8 billion.

In June this year, in a single day, Samsung Heavy won deals for the construction of fourteen LNG carriers. SHI won an order from an undisclosed Bermuda-based shipowner for twelve LNG carriers and two for an African shipowner.

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This marks the second straight year that SHI exceeded the yearly order goal. Last year, the company received orders worth $12.2 billion, or 134 percent of its target.

The firm signed contracts for the construction of a total of 80 units comprising 22 LNG carriers, 44 boxships and 14 crude oil carriers.

The LNG market is experiencing a ‘perfect storm’, as explained by Panos Mitrou, Lloyd’s Register’s Global Gas Segment Director.

The pressure of the energy transition combined with the Ukraine crisis have seen a major increase in investment in liquefaction plants and a greater appetite for expanded Qatari production of gas. The demand for LNG imports is further ramping up as countries look at alternatives to Russian imports, spurring the demand for LNG carriers.

The LNG carrier market is expected to record a compound annual growth rate, or CAGR, of approximately 3.6% from 2022-2027.