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Shipping & Shipbuilding

Korea Shipbuilding & Offshore wins $1 bn order to build 10 vessels

The Hyundai Heavy Industries Group unit has achieved 82% of this year’s order target

By Jun 21, 2021 (Gmt+09:00)

LNG carrier built by Hyundai Mipo
LNG carrier built by Hyundai Mipo

Korea Shipbuilding & Offshore Engineering Co. (KSOE) has won a 1.1 trillion won ($1 billion) deal to build 10 vessels, bringing its total ship construction orders to $12.2 billion year to date.

KSOE said on Monday that it has signed contracts with four overseas shipping companies to build two 174,000-cubic-meter liquefied natural gas (LNG) carriers, three 91,000-cubic-meter liquefied petroleum gas (LPG) carriers and a 300,000 ton very large crude carrier (VLCC).

The intermediate shipbuilding holding company of the Hyundai Heavy Industries Group also said it has clinched a deal to build four 115,000-ton petrochemical carriers (PCs) for a European shipowner.

KSOE has three shipbuilders under its wing – Hyundai Heavy Industries Co., Hyundai Samho Heavy Industries Co. and Hyundai Mipo Dockyard Co.

Hyundai Heavy's shipyard
Hyundai Heavy's shipyard

The two LNG carriers, to be equipped with a reliquefaction system on the vessel, will be constructed by Hyundai Heavy Industries by the end of 2023, KSOE said in a regulatory filing.

The three LPG carriers, to be built by Hyundai Heavy and Hyundai Samho, are eco-friendly vessels equipped with dual-fuel engines, which use oil and LNG alternately to reduce carbon emissions.

The VLCC, to be constructed at the Hyundai Samho shipyard, will be delivered by the end of the second half of 2023. The VLCC will be equipped with scrubbers that help reduce sulfur emissions in response to strengthened regulations by the International Maritime Organization (IMO).

VLCC built by Hyundai Heavy
VLCC built by Hyundai Heavy

“We’re getting a lot of queries from shipowners about building eco-friendly vessels ahead of the upcoming announcement by the IMO on tighter regulations,” said a KSOE official.

With the latest order to build 10 vessels, KSOE’s total shipbuilding contracts have reached $12.2 billion for 140 ships, including two offshore plants, so far this year, accounting for 82% of its annual goal of $14.9 billion.

Write to Kyung-Min Kang at Kkm1026@hankyung.com

In-Soo Nam edited this article.

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