DSME bags $1.3B orders for six LNG carriers

South Korean shipbuilding company Daewoo Shipbuilding & Marine Engineering (DSME) has received orders for six liquefied natural gas (LNG) carriers, exceeding $10 billion in annual orders for the first time in seven years.

On 1 December 2021, two undisclosed North American shipowners placed orders for four and two LNG carriers, respectively. The orders are valued at KRW 1.5 trillion (about $1.3 billion).

Under the deals, the 174,000 cbm units will be built at the Okpo shipyard and delivered to their owners by the second half of 2025.

Specifically, each LNG carrier will be equipped with a dual fuel propulsion engine (ME-GI) and an advanced gas management system. This will significantly reduce the emission of gases into the atmosphere, according to DSME. 

With the latest deals, the shipbuilder said it has exceeded its annual order target of $7.7 billion as it has won orders worth $10.44 billion so far this year.

The orderbook value surpasses $10 billion for the first time in seven years since 2014, when the shipbuilder secured $14.9 billion in annual orders.

This year’s orderbook comprises a total of 59 vessels, including 20 containerships, 15 LNG carriers, 11 very large crude oil carriers, 9 very large gas carriers, 1 wind turbine installation vessel (WTIV), 1 submarine, and 2 offshore plants, DSME informed.

Back in 2019, an agreement was reached for DSME to be taken over by its bigger rival in South Korea, Hyundai Heavy Industries.

HHI formally submitted applications to relevant competition regulators. However, since 2019, the mega-merger has faced hurdles and has been under an in-depth probe in the EU.

China, Kazakhstan and Singapore have approved the business combination, while Japanese, South Korean, and EU approvals are still pending.