SHI Secures $370m Deal to Build Two LNG Carriers

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  • SHI signs a $370m contract with an undisclosed entity.
  • The contract is of building two 174,000m³ LNG vessels and further 2 more vessels are waiting from approval.
  • The carriers will be delivered by the October 2020.
  • More such orders (194) are on the loop for the next 5 years with 37 orders already placed for this year.

An undisclosed entity has given a $370m contract to the Samsung Heavy Industries (SHI) for building two 174,000m³ liquefied natural gas (LNG) carriers. The deal has option for 2 more vessels if the Buyer’s Board Of Directors (BOD) approves it, says a report published by the ship-technology.com

SHI expects to deliver the LNG carriers in July and October 2020, respectively.

Carrier Features

Once developed, the carriers will feature a Mark-III Flex-type containment system with re-liquefaction to reduce boil-off gas (BOG). It will be powered by an X-DF dual-fuel engine that can use both natural gas and diesel.

Characterised by a low-pressure system, the engines are designed to ensure safe operation. Both the vessels will be equipped with a range of fuel-saving technologies to be customised in accordance with the owner’s operational requirements.

According to the Clarksons Research report, gas carrier and container ship newbuilding orders are expected to increase with a stable global economy and growth of seaborne trade. “Both the vessels will be equipped with a range of fuel-saving technologies to be customised in accordance with the owner’s operational requirements.”

Impact of the deal

The growth in the deployment of the new LNG carrier is set to be driven by strong LNG carrier spot rates, as well as increased use of LNG as fuel and gas in power generation, said the report.

A SHI representative said: “Energy Information Administration (EIA) stated that US’s natural gas production is to continue growth with export to Asia, especially China, in mind. SHI would continue leadership in LNGC newbuilding market with technological edge.”

Last month, SHI announced a tentative order for one LNG carrier to be operated by an undisclosed customer. The order also includes an option for one more carrier.

The report has also predicted that a total of 194 LNG carriers will be ordered within the next five years, which include 37 orders so far this year.

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Source: Ship Technology

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