KSOE lands $519 million deal to build LNG carrier duo

South Korean shipbuilder HD Korea Shipbuilding & Offshore Engineering Co. (KSOE) has inked a deal with an undisclosed shipowner for the construction of two liquefied natural gas (LNG) carriers.

According to the company’s stock exchange filing, the vessels will be constructed by KSOE’s unit Hyundai Samho Heavy Industries (HSHI).

The KRW 674.9 billion ($519 million) order was placed by a shipper located in Oceania.

The company plans to deliver the LPG carriers by the end of March 2027.

The deal comes on the back of an order received for another LNG carrier trio at the beginning of the month. Under a $765 million contract, the company plans to deliver three LNG carriers to an undisclosed shipowner from North America. The ships are slated for delivery in stages by the end of 2027.

Since the beginning of this year, KSOE has signed $7.09 billion worth of orders. The orders include the construction of 52 ships or 45 percent of its yearly order target of $15.74 billion.

To remind, 2022 for South Korean shipbuilders was a very successful year when it comes to orders for the construction of the vessels.

The country’s builders won 70 percent (10.1 million CGT) of global orders (14.5 million CGT) for large-scale LNG carriers in a bumper year for the sector which saw a 131 pct rise in orders resulting in 14.5 million CGT. The ordering spree was triggered by heightened demand for LNG tonnage stemming from energy security tensions instigated by Russia’s war in Ukraine.