Hyundai Heavy’s KSOE wins $2.2 billion order for 10 LNG carriers

Korea Shipbuilding & Offshore Engineering Co. (KSOE), the intermediate holding company of the world’s top shipbuilder Hyundai Heavy Industries Group, has won a 2.87 trillion won ($2.21 billion) deal to build 10 LNG carriers.

The company said on Thursday it has won the mega-deal for the large-size carriers (174,000 cubic meters) from shipowners in Europe and Oceania.

Eight such ships from a European shipowner will be built at Hyundai Heavy’s shipyard in Ulsan, while two vessels for a company in Oceania will be manufactured at Hyundai Samho Heavy Industries Co.’s dockyard in Yeongam, South Jeolla Province.

The 10 ships will be delivered to the buyers by 2026, according to KSOE.

So far this year, the company has clinched orders for a total of 34 LNG carriers, more profitable than oil tankers and container ships. The total represents the largest figure for a shipbuilder that has won LNG carrier deals year to date.

Industry watchers said Korean shipbuilders are set to benefit from the Russian invasion of Ukraine as European countries reduce natural gas purchases from Russia and look for alternative sources.

Analysts said the 2022 outlook for Korea’s Big Three shipping companies – KSOE, Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Samsung Heavy Industries Co. – is brighter on demand due to tighter environmental regulations and new orders to replace aging ships.

With growing demand for new ships, shipbuilding prices are expected to continue their upward trend, keeping Korean shipyards buoyant in coming years, they said.

Write to Ik-Hwan Kim at lovepen@hankyung.com
In-Soo Nam edited this article.