SHI wins $209.2m deal for two LNG-fuelled VLCCs

15 April 2020 (Last Updated April 15th, 2020 14:44)

South Korea-based shipbuilder Samsung Heavy Industries (SHI) has secured a contract worth $209.2m from a shipowner in Bermuda.

SHI wins $209.2m deal for two LNG-fuelled VLCCs
Samsung Heavy Industries will build two LNG-fuelled VLCCs for a shipowner in Bermuda. Credit: Valentin Schönpos.

South Korea-based shipbuilder Samsung Heavy Industries (SHI) has secured a contract worth $209.2m from a shipowner in Bermuda.

As part of the deal, the company will construct a two liquefied natural gas (LNG)-fuelled VLCCs, which are expected to be delivered by April 2022.

The vessels will feature S-Fugas, which is an LNG fueling system that was developed by the shipbuilder. They are compliant with IMO 2020 standards to decrease the SOx emissions by 99%, NOx by 85% and CO₂ by 25% as compared to diesel.

The ships will be equipped with other SHI technologies, including Energy Saving Devices (ESDs), to improve fuel efficiency and a smart ship solution SVESSEL.

To meet the increasing demand for cleaner ships, the company has adopted LNG fuel tanks and engines such as ME-GI and X-DF since 2012.

SHI official said: “We see increasing demand for LNG-fuelled VLCCs on top of that for S-max and A-max tankers powered by LNG.

“SHI aims to take more opportunities to come as we have predominated the market with the advancement of technologies.”

In December 2019, the shipbuilder secured a contract to construct two Aframax tankers. SHI received the order valued at $158m from a European shipping firm.

In June 2019, the company secured a contract to construct two LNG carriers. The order, valued at approximately $381m was secured from a Bermuda-registered client.

In May 2019, SHI secured an order worth $190m to construct one LNG carrying vessel.