South Korea’s top shipbuilders are capitalizing on resilient demand for energy infrastructure, landing a string of liquefied natural gas (LNG) and ammonia carrier orders that reinforce their dominance in some of the industry’s highest-value segments.

The country’s three largest shipbuilders – HD Korea Shipbuilding & Offshore Engineering Co., Samsung Heavy Industries Co. and Hanwha Ocean Co. – have all announced new contracts tied to energy transport and gas infrastructure.

Hanwha Ocean said Monday that it won a 507.4 billion won ($345 million) order from an African shipowner to build three very large ammonia carriers.

Including the latest contract, the company has secured orders for 10 ammonia carriers so far this year.

A slew of orders comes as the yard has been reinforcing its prowess in high-value-added ship development in response to growing demand for eco-friendly fuel vessels.

Last year, Hanwha Ocean began working with Korean Register, a ship classification society, to develop a 150,000-cubic-meter very large ammonia carrier.

On the same day, HD Korea Shipbuilding & Offshore Engineering Co. also signed a 504.8 billion won contract with KSS Line Co. to build three very large gas carriers.

The vessels will be built by its affiliate HD Hyundai Heavy Industries Co. and delivered by the second half of 2029.

HD Korea Shipbuilding has won orders for 86 ships so far this year, including 18 liquefied petroleum gas (LPG) and ammonia carriers.

Samsung Heavy Industries Co. also received a 484.8 billion won order from an Asian shipowner for one floating storage and regasification unit, or FSRU.

An FSRU is a floating LNG terminal that stores liquefied natural gas and converts it back into gas for delivery to shore.

Because they require shorter lead times than onshore LNG terminals, FSRUs are often used by countries seeking to add gas import capacity in the near term.

“Amid growing demand for energy infrastructure, FSRUs could become one of the most realistic alternatives,” a Samsung Heavy official said.
Source: The Korea Economic Daily