Korean Shipbuilders Scores Big, Secures LNG Orders


South Korea’s three major shipbuilders are winning large orders for liquefied natural gas (LNG) carriers in early 2024, indicating their strategies of selectively receiving orders for high value-added ships from their huge backlog of orders are bearing fruit.

Higher Than Market Price

HD Korea Shipbuilding & Offshore Engineering Co., the mid-tier holding company for HD Hyundai Co.’s shipbuilding and maritime business, announced on Monday that it recently signed a contract with an Oceania-based carrier to build four LNG carriers with a capacity of 174,000 cubic meters each.

The contract is worth a total of $1.08 billion, and these vessels are scheduled to be delivered by January 2028. With this contract, the company has orders for six LNG carriers in 2024 to date.

A notable aspect of this contract is that the unit price per vessel is higher than the market price. The unit price for the 174,000-cubic-meter LNG carriers contracted by HD Korea Shipbuilding & Offshore Engineering in this deal is $270 million per ship, a record high. The previous highest unit price for a vessel of the same type was $265 million.

Market Structure

The reason behind this development is the market structure that favors suppliers. “Currently, the three major shipbuilders in Korea can maintain their order backlogs at the level of the end of 2023 by winning just six months‘ worth of new contracts,” a shipbuilding industry insider said. “There is no reason to lower their ship prices, and they can even charge higher prices.”

For its part, Samsung Heavy Industries Co. signed a contract with QatarEnergy, Qatar’s state-owned petroleum company, in early February 2024 for the construction of 15 LNG carriers with a capacity of 174,000 cubic meters each and a total contract amount of 4.52 trillion won.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: Pulsenews


  1. What i do not understood is in truth how you are not actually a lot more smartlyliked than you may be now You are very intelligent You realize therefore significantly in the case of this topic produced me individually imagine it from numerous numerous angles Its like men and women dont seem to be fascinated until it is one thing to do with Woman gaga Your own stuffs nice All the time care for it up

  2. you are in reality a just right webmaster The site loading velocity is incredible It seems that you are doing any unique trick In addition The contents are masterwork you have performed a wonderful task on this topic

Comments are closed.