Samsung Heavy Industries has secured a large contract for liquefied natural gas carriers, breaking its recent drought in orders. The company announced on Aug. 18 that it has signed contracts to build and supply six LNG carriers to two shipowners from Oceania for a total of 2.1 trillion won.

Samsung Heavy Industries recently concluded a contract for four LNG carriers with an Oceania-based shipowner, followed by an additional contract for two vessels with another shipowner from the same region on the same day. The LNG carriers contracted in this deal will be delivered sequentially by November 2028. A Samsung Heavy Industries official stated, “The demand for eco-friendly vessels is expected to remain steady following the International Maritime Organization (IMO)’s decision to introduce a global shipping carbon tax.”

With this contract, Samsung Heavy Industries has secured $4.8 billion in new orders, instantly fulfilling 15.5% of its annual order target of $9.8 billion (approximately 13.5 trillion won). This year, Samsung Heavy Industries has secured orders for 7 LNG carriers, 9 shuttle tankers, 2 ethane carriers, 4 crude oil tankers, 2 container ships, and 1 offshore production facility (pre-work). Particularly in the merchant vessel sector, the company has received orders for $4.1 billion (24 vessels, 70%) out of the target of $5.8 billion (approximately 8 trillion won), showing a favorable trend.

In the offshore facilities sector, the company signed a preliminary work contract worth $700 million (about 1 trillion won) last month and is preparing for the main contract. Samsung Heavy Industries aims to secure one more floating liquefied natural gas (FLNG) facility by the end of the year to achieve its target. Industry experts highly anticipate that Samsung Heavy Industries will secure part of the Mozambique FLNG project and conclude the main contract within the third quarter.

The company is also accelerating its final negotiations for an FLNG construction contract with Norway. According to Rystad Energy, a Norwegian energy consulting firm, the annual production capacity of global FLNG is expected to triple from the current 14.1 MTPA (1 MTPA = 1 million tons of LNG per year) to 42 MTPA by 2030. For shipbuilders, FLNG is advantageous for improving profitability as the price for a single unit approaches 2 trillion won.

A Samsung Heavy Industries official said, “We are negotiating numerous projects including LNG carriers and eco-friendly container ships, and considering the FLNG newbuilding negotiation situation, achieving this year’s order target will not be a problem,” adding, “We will continue to pursue selective orders focused on profitability based on our sufficient order backlog.”

Source:Business Korea