Hanwha Ocean announced on Oct. 2 that it has secured an order for one floating storage and regasification unit (LNG-FSRU) from an Asian shipowner for KRW 545.4 billion. The vessel is expected to be completed and delivered to the shipowner around October 2027. This significant order highlights Hanwha Ocean’s leading position in the global LNG-FSRU market, where it holds a 30% market share.

On the same day, Samsung Heavy Industries revealed that it has secured a contract to construct two LNG carriers worth KRW 678.3 billion with an Asian shipowner. This contract, which amounts to 8.5% of Samsung Heavy Industries’ recent sales, extends until April 30, 2027. HD Hyundai Samho also announced a contract with an Asian shipping company to construct two ultra-large ethane carriers (ULEC) worth KRW 546.1 billion, scheduled for delivery by September 2027.

Additionally, HD Hyundai Mipo has agreed to build and supply two 45,000㎥ class liquefied petroleum gas carriers (LPGC) to an Oceania-based shipping company for KRW 219.1 billion. The company has also signed a contract with an Asian shipping company to supply a 125,000㎥ class LNG bunkering vessel worth KRW 116.2 billion.

As of October, Hanwha Ocean has secured approximately USD 6.1 billion in orders, significantly surpassing last year’s order amount of USD 3.52 billion. The company’s orders include 17 LNG carriers and LNG-FSRUs, seven very large crude carriers (VLCCs), two very large ammonia carriers (VLACs), one very large gas carrier (VLGC), one offshore plant, and three special ships, totaling 31 vessels and plants.

HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company of HD Hyundai, has also signed construction contracts for five new ships worth KRW 881.4 billion.

Hanwha Ocean’s recent achievements underscore its expertise and leadership in the LNG-FSRU sector. The company has constructed 12 out of the 41 LNG-FSRU/RV vessels currently in operation worldwide. An LNG-FSRU is a type of ship that stores liquefied natural gas (LNG) and has the capability to regasify it on board, allowing for the supply of natural gas without the need for extensive onshore infrastructure. This technology is particularly useful in regions where building onshore facilities is challenging or where there is a temporary surge in natural gas demand.

The economic significance of LNG-FSRUs compared to general LNG carriers is notable. LNG-FSRUs are considered high-value-added products, with market prices exceeding USD 400 million, compared to around USD 260 million for general LNG carriers. This highlights the financial importance of such orders for shipbuilding companies.

Environmental considerations also play a crucial role in the increasing demand for LNG and LNG-FSRUs. LNG produces fewer pollutants compared to oil, coal, and nuclear power, making it a preferred choice in the global shift towards more sustainable energy solutions.

The global shipbuilding industry is highly competitive, with major players like HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho, HD Hyundai Mipo, and Samsung Heavy Industries vying for market share. Hanwha Ocean’s significant market share in the LNG-FSRU/RV sector underscores its leading position in this niche market.

Hanwha Ocean’s recent achievements and the broader implications for the shipbuilding industry and global energy markets are significant. The company’s success in securing high-value contracts and surpassing the annual USD 6 billion mark in orders highlights its substantial growth and leadership in the industry.

Source: BusinessKorea