South Korea’s largest shipbuilder Korea Shipbuilding & Offshore Engineering Co. (KSOE) has won fresh orders worth 823 billion won ($724 million) in recent weeks amid growing global demand for crude carriers and eco-friendly gas carriers.
KOSE said Monday that its shipbuilding subsidiaries have received new contracts to construct a total of 10 vessels for four clients from Europe, Africa and Oceania. The new orders include four 300,000-ton very large crude carriers (VLCC), three 91,000-cubic-meter very large gas carriers (VLGC), one 40,000-cubic-meter medium-sized liquefied petroleum gas (LPG) carrier, and two 50,000-ton petroleum carriers. The contracts for VLGCs and LPG carrier are subject to an option for additional orders in the future.
Hyundai Heavy Industries will be responsible four VLCCs at its Ulsan dockyard in Korea with a delivery goal by February 2023. Hyundai Samho Heavy Industries will construct three VLGCs at its dockyard in Yongam, Korea for delivery by April 2023. Hyundai Mipo Dockyard will build the mid-sized LPG carrier in Korea for delivery in the first half of 2023 and Hyundai Vietnam Shipbuilding will construct the petroleum carriers for delivery from the second half of 2022.
KOSE said the VLCCs will be fitted with emission control systems including scrubber to meet the International Maritime Organization’s stricter environmental regulations.
According to industry tracker Clarkson Research, there have been 23 VLCC orders newly placed so far this year and also 23 orders for LPG carriers. Of these, KOSE brought home contracts for nine VLCCs and 15 LPG carriers.
A KOSE official said there are growing inquiries about new crude carriers in line with rising oil prices amid stronger environment regulations that require cleaner LPG and LNG vessels.
On Monday, KOSE shares gained 3.83 percent to close at 122,000 won in Seoul.