South Korea’s DSME in $1.1 billion LNG carrier deal

South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering (DSME) has won a deal under which it may build up to six liquefied natural gas (LNG) carriers with a price tag of about $1.1 billion for an unidentified US owner.

Daewoo said in a statement on Wednesday that firm contracts have been signed for two 174,000-cbm LNG carriers for about $370.1 million with an option for four additional vessels.

The deal for the additional four LNG carriers could be finalized in 2019, according to the shipyard.

The two LNG carriers that have been confirmed will be built at the Okpo shipyard and are expected to be delivered to the US owner in the first half of 2021.

These vessels will be powered by the M-type, electronically controlled, gas injection (MEGI) engines and will have full reliquefaction systems installed onboard.

DSME said in the statement that the situation in the LNG shipping industry has improved recently due to a surge in LNG carrier freight rates.

The shipbuilder has won about $5.84 billion worth of ship orders in 2018, including 14 LNG carriers.

LNG World News Staff