- South Korean shipbuilders have embraced the use of LNG and the orders have been growing
- The industry experts believe that ship orders can reach 69 in 2019 when compared to previous years
- The demand for LNG has been further fueled by China’s policy to encourage businesses to embrace LNG
On January 8, the industry people have voiced that South Korean shipbuilders are expected to continue to benefit from a growing number of liquefied natural gas (LNG) ship orders this year.
Will they see an improvement in 2019?
According to the data compiled by London-based shipping group Clarkson Research, the industry expects the world’s overall LNG ship orders to reach 69 in 2019 when compared to 65 in 2018 and 17 in 2017.
Moreover, there is a rising demand for LNG ships due to the fact that China is encouraging businesses to use LNG by providing attractive incentives.
Key players in the market
Kickstarted by robust LNG ship orders, South Korea’s three biggest shipbuilders — Hyundai Heavy Industries Co., Samsung Heavy Industries Co., and Daewoo Shipbuilding & Marine Engineering Co. were successful in achieving their order targets for 2018. The three shipbuilders are the world’s three biggest shipbuilders by orders.
The companies stated that Hyundai Heavy received US$13.3 billion worth of orders last year, higher than its goal of $1.32 billion. Samsung Heavy bagged $6.3 billion worth of orders, exceeding its target of $5.1 billion. Daewoo Shipbuilding earned $6.81 billion in orders, higher than its target of $6.6 billion.
Oil market looks bleak
The future of the oil market looks bleak with rebound in offshore facility orders is unlikely this year as global oil majors remain cautious about investing in oil exploring ships due to declining oil prices.
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Source: Yonhap News Agency