Samsung Heavy wins near $1 billion LNG-powered ship order this week

2021.02.19 11:18:21 | 2021.02.19 11:48:37

[Photo provided by Samsung Heavy Industries Co.]이미지 확대

[Photo provided by Samsung Heavy Industries Co.]

South Korea’s Samsung Heavy Industries Co. extends winning streak in the order book on LNG power, landing near $1 billion deals on vessels running low-carbon gas fuel.

Samsung Heavy Industries said in a disclosure on Thursday that it received a 458.7 billion won ($414 million) order from an unnamed shipping company based on Oceania to build four units of very large crude carriers (VLCC) powered by LNG. The Korean shipbuilder plans to deliver the four vessels in phases by June 2023.

Shares of Samsung Heavy Industries were trading 0.92 percent down at 6,450 won on Friday.

With the latest orders, Samsung Heavy Industries won orders to build total nine LNG-fueled vessels including five container ships within a week. Earlier this week, the shipbuilder procured a contract to build five LNG-powered container vessels with an option to build five more ships, which could raise the total value of orders to 2 trillion won.

The ships will be applied with environmentally-friendly technology that meets marine fuel standards such as lower sulfur content and carbon dioxide emissions set by the International Maritime Organization.

They will also be loaded with Samsung Heavy Industries’ self-developed LNG fuel supply system for high-pressure gas-diesel engine ME-GI for LNG use. Thanks to its proprietary technology to build fuel supply system, a core technology for LNG power, for both low-pressure gas-diesel engine X-DF and high-pressure gas-diesel engine ME-GI, the builder towers above others in the green vessel industry. .

According to U.K. shipping industry data provider Clarkson Research Services, Samsung Heavy Industries snatched 26 of the world’s 46 LNG-fueled VLCC orders, taking up 57 percent of total market since it was consigned with the world’s first LNG-powered VLCCs in April last year.

By Lee Yu-sup and Lee Eun-joo

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