News and Updates on HD Hyundai

HSHI Wins New Order for Two LNG Carriers

Hyundai Samho Heavy Industries (HSHI) signed a contract worth USD 370 million with Greece’s Consolidated Marine Management (CMM), to build two 174,000㎥ liquefied natural gas (LNG) carriers for sequential delivery from 2021.

HSHI’s new win brings the year-to-date number of large LNG vessels Hyundai Heavy Industries (HHI) Group has on order to 22, nearly 50% of 45 on order globally.

Back in February, HHI Group became Korea’s first shipyard to deliver a dual-fuel LNG tanker, demonstrating its technological advancements with a package solution combining a dual-fuel engine and an LNG fuel gas supply system (Hi-GAS). The group is proactively responding to the growing demand for LNG-powered ships, a solution to the world’s green shipping efforts, by offering a total solution for LNG vessels comprising advanced systems for full re-liquefaction system, regasification (Hi-ReGAS), bunkering, cargo containment and others, all applied to its LNG carriers.

According to Clarkson Research, a total of 60 LNG vessel newbuilding orders will have been placed by the end of this year, a trend that will hold through 2027 with an annual average of at least 60 units on order.

The demand for LNG carriers has recently seen an upward trend worldwide because LNG shipping rates, buoyed by burgeoning volumes of global transport due mainly to the United States emerging as a gas exporting giant and China seeking to tackle emissions, are hitting highs.

The average shipping rate for a 160,000㎥ LNG carrier more than doubled from USD 78,000/day in the first half of this year to USD 190,000/day in recent weeks.

“The focus we have placed on securing orders for LNG carriers and other high value-added ships, noting signs of the market’s recovery, is now paying off,” said an official of HHI. “With our technological competitive edge and sound financial status that set us apart from other shipyards, we will continue to lead the market for LNG ships.”

HHI Group’s combined year-to-date orders received stand at a total of 139 ships valued at USD 11.8 billion, or 90% of its annual target of USD 13.2 billion.