Since earlier this year, several U.S. LNG export projects have been approved, marking a concerted effort to enhance the United States’ position as a leading energy exporter. Among these initiatives are major projects like Venture Global, Commonwealth, Delfin, and Golden Pass, which have received permits that underscore an intensified U.S. energy export strategy. This development holds significant implications for the global LNG market and is closely monitored by industry stakeholders worldwide.

In a recent move that underscores this strategic shift, U.S. LNG producer Venture Global is considering ordering up to 12 LNG carriers from South Korean shipbuilders. The company recently visited Korea to inspect shipyards operated by HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries—the so-called “Big Three” of the Korean shipbuilding industry. These visits are part of ongoing negotiations that could lead to a finalized order contract by the end of June.

The initial contracts are expected to cover four LNG carriers with capacities ranging from 174 thousand to 180 thousand cubic meters. There is also an option for Venture Global to secure an additional eight vessels, bringing the total potential order value to a staggering 4.3 trillion won (approximately $2.9 billion). This prospective deal highlights South Korea’s dominance in the global LNG carrier market—a sector where 90% of the 750 operational carriers are “Made in Korea.” Last year alone, Korean shipyards secured 70% of global LNG vessel orders.

The technological complexity involved in constructing LNG carriers—particularly the specialized cargo tanks required to maintain LNG at extremely low temperatures—has positioned Korean shipbuilders as leaders in this niche market. Their advanced engineering capabilities and expertise make them preferred partners for international clients like Venture Global.

Clarkson Securities predicts that global demand for LNG carriers will reach up to 126 units by 2029, with each vessel costing an average of $256 million. This projection suggests a total market size of approximately 40 trillion won, driven by increasing global energy needs and a shift towards cleaner energy sources like LNG.

Source:Business Korea