DSME Clinches US$1.8 Bil. Order for 6 LNG Carriers from European Client

DSME

Daewoo Shipbuilding & Marine Engineering (DSME) has been awarded an order to build six liquefied natural gas (LNG) carriers valued at US$1.8 billion.

DSME announced on Oct. 12 that it has received the order from a European shipping company, without disclosing its name. Industry insiders say that the client is highly likely to be Novatek, Russia’s second-largest natural gas producer. Novatek has been pushing to place orders for icebreaking LNG carriers to be used for an Arctic Ocean LNG project.

The order is the first one for LNG carriers in 10 months since December 2019. It will boost the company’s order intake target attainment rate from 24 percent to 46 percent. Its target for this year is US$7.21 billion.

Novatek recently placed an order for 10 icebreaking LNG carriers with its shipbuilder Zvezda Shipyard. Zvezda will reportedly give the order to its technology partner Samsung Heavy Industries. Samsung Heavy Industries is also set to sign a contract with French chemical company Total to build eight LNG carriers for a Mozambique gas field project. The two orders are valued at about US$4 billion.

Malaysia’s state-run energy company Petronas is also expected to order six LNG carriers within the year for a Canadian LNG project. Petronas has a 25 percent stake of the project. Analysts say that Hyundai Samho Heavy Industries is highly likely to win the order.

An industry insider said that while the Qatar LNG project has been delayed somewhat, LNG ship orders from Russia and Canada will ease the order drought for Korean shipbuilders.

Global shipping companies are also increasing their orders for container ships. China’s Shanghai Container Freight Index (SCFI) has recently hit an eight-year high since mid-July 2012 due to a rebound in the shipping industry. Germany’s Hapag-Lloyd reportedly requested bid proposals for LNG-powered container ships from Korean and Chinese shipbuilders in late September.

Source: Business Korea

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