- Concerns are rising over a drought in orders as domestic shipbuilders experience a sharp decline in orders for liquefied natural gas (LNG) carriers, which hold a competitive edge over China.
- The shipbuilding industry is pinning hopes on increased exports of LNG from the United States due to tariff agreements with the European Union (EU) and the Korea-U.S. shipbuilding alliance.
South Korea’s shipbuilding giants, long considered global leaders in constructing high-value vessels, have recently experienced a downturn in new LNG carrier orders, reports ChosunBiz.
Following a strong orderbook in previous years, 2025 has seen a noticeable slowdown, prompting concerns across the industry. Major shipbuilders, including Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean, are now facing increasing pressure to secure future contracts as their backlogs gradually thin out.
Industry insiders point to the winding down of large-scale LNG projects, such as Qatar’s North Field expansion, which previously drove record-breaking demand for carriers. With most of those contracts now fulfilled or already in production, South Korean yards are turning their attention to the next big opportunity: the United States.
Rising U.S. LNG Exports Offer New Hope
Amid the global shift toward cleaner energy sources, U.S. LNG exports are rapidly growing, positioning the country as a dominant supplier in global markets. As new liquefaction terminals come online and capacity expands, demand for LNG transportation is expected to rise significantly. Korean shipbuilders are now betting on this expansion to drive a new wave of LNG carrier orders.
The U.S. Energy Information Administration has forecasted that American LNG exports could reach record levels by the end of the decade, and South Korean yards hope this surge will translate into substantial new contracts. Their proven expertise in LNG vessel construction places them in a strong position to secure orders from American energy companies and shipping lines.
Strategic Ties and Long-Term Outlook
Efforts to strengthen collaboration between the U.S. and South Korea in shipbuilding are gaining momentum. Bilateral discussions have included technology sharing, investment in U.S.-based shipyards, and potential co-production of vessels. Such cooperation could provide Korean yards with a competitive edge in accessing U.S. clients and securing long-term contracts.
Despite the current lull, South Korea’s shipbuilders remain optimistic. With a strong reputation, advanced technology, and an existing order backlog that extends into 2027, the sector is well-positioned to weather short-term fluctuations. However, the pace at which new orders arrive—particularly from the U.S.—will be critical in determining the industry’s trajectory over the next few years.
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Source: ChosunBiz
