Samsung Heavy wins major LNG carrier contract

A tug boat tows an AET Tankers Pte liquid natural gas (LNG) dual-fuelled aframax vessel near the Samsung Heavy Industries Co. shipyard in this aerial photograph taken in Geoje, South Korea, on Friday, Feb. 1, 2019. Korea Development Bank (KDB) has contacted Samsung Heavy on whether it would be interested in Daewoo Shipbuilding & Marine Engineering Co. before the bank makes a definitive decision on its stake. Samsung Heavy will review KDB's proposal for Daewoo, the company said in a text message.

An unnamed Middle Eastern shipowner has ordered 15 LNG carriers from Samsung Heavy Industries (SHI).

The vessels will have 170,400 cubic metres of capacity each. The contract is worth 4.57 trillion won ($3.44 billion). SHI is due to deliver them by October 2028.

The company said this was larger than its previous largest order, which was for 16 methanol-power containerships, worth 3.95trn won ($3bn).

An official from the company said the large order would give SHI new momentum towards profitability. This year, orders have reached 17 ships, worth $3.7bn, in just over a month. In the whole of 2023, orders reached $8.3bn.

SHI did not name the shipowner who ordered the 15 LNG carriers. There is speculation that it is QatarEnergy (QE), which is in the midst of expanding its export capacity.

The Qatari company awarded a 17 LNG carrier contract to HD Hyundai Heavy Industries, worth $3.8bn, in September 2023.

SHI also won a preliminary agreement for a floating LNG (FLNG) vessel in January from a North American company.

Assuming Canada’s Cedar LNG project reaches final investment decision (FID), SHI would deliver the vessel in 2028. The Canadian company has said it is aiming to reach this hurdle by the end of the first quarter.