KSOE bumps up newbuild orders, nets deals for 8 LNG and LPG carriers
KSOE bumps up newbuild orders, nets deals for 8 LNG and LPG carriers - Offshore Energy
KSOE bumps up newbuild orders, nets deals for 8 LNG and LPG carriers
South Korean shipbuilding major HD Korea Shipbuilding & Offshore Engineering (KSOE) has signed contracts for eight new ships, including six liquified natural gas (LNG) carriers and two liquefied petroleum gas (LPG) carriers.
KSOE on Tuesday revealed it secured several newbuild contracts with undisclosed companies. In one of its stock fillings, KSOE noted that a deal was signed for the construction of two LNG carriers for a shipowner based in Oceania.
The vessels, which will be constructed by KSOE’s subsidiary HD Hyundai Heavy Industries (HHI) are slated for delivery by November 2027. The value of the contract is KRW 742.3 billion ($555 million).
In a separate statement, KSOE said that a contract was inked for the construction of four LNG carriers. The ships, which will be constructed for an undisclosed shipper from Europe, will be delivered by September 2027. The LNG carriers will also be built by HHI.
This deal is worth around KRW 1.408 trillion ($1.05 billion).
In a third statement, KSOE announced that a KRW 273 billion ($204 million) deal was concluded with a shipping company from Asia. Under the contract, Hyundai Samho Heavy Industries, one of the three KSOE’s affiliates, will construct 2 LPG carriers.
The units are planned for delivery by the end of November 2027.
The newbuild orders come on the back of the recent deals that KSOE scored. In March this year, the South Korean shipbuilder inked a deal with an undisclosed shipowner for the construction of two LNG carriers.
To remind, 2022 for South Korean shipbuilders was a very successful year when it comes to orders for the construction of the vessels.
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.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.