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LNG carriers

Daewoo wins $1.8 bn LNG ship orders from Europe

Oct 12, 2020 (Gmt+09:00)

Daewoo Shipbuilding & Marine Engineering Co. has secured $1.8 billion in orders to build six liquefied natural gas (LNG) carriers in Europe, in its first LNG ship orders received since the start of this year.  

The South Korean shipbuilder did not identify the company placing the orders in regulatory filings on Oct. 12. But market speculation is that Russia’s natural gas producer Novatek must have ordered the vessels to be delivered by the end of 2023.

Novatek has been pushing ahead with its largest LNG project, Arctic LNG 2, despite the COVID-19 impact. Under the project, it will build LNG production lines with an annual capacity of 20 million tons in the North Pole by the end of 2022.
Daewoo Shipbuilding's icebreaking LNG carrier

The Russian natural gas giant also recently placed an order for 10 icebreaking LNG carriers with its shipping partner Zvezda. Zvezda is tipped to transfer the order to its technology partner Samsung Heavy Industries Co., according to shipbuilding industry sources.

Separately, Samsung Heavy is close to winning an order for eight LNG vessels as part of Total's Mozambique LNG project. The French oil giant is building a massive natural gas center in the African country.

Combining the two orders, Samsung is expected to win $4 billion worth of shipbuilding orders this year.

Despite delays in Qatar’s LNG expansion project, Korean shipbuilders are taking LNG ship orders placed by Russian and Canadian energy companies.

Hyundai Samho Heavy Industries Co. is expected to receive an order for six LNG carriers from Canada’s LNG project within the year. The Canada LNG project is a joint venture of five energy companies, including Malaysia’s Petronas and Korea’s KOGAS.

Global shipping companies are also ramping up containership orders, in tandem with the buoyant shipping business.

Hapag-Lloyd AG, a German shipping firm, invited bids from Korean and Chinese shipbuilders last month to build LNG-powered container ships, according to industry sources.

Write to Man-Su Choi at bebop@hankyung.com

Yeonhee Kim edited this article.

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