SHI secures $370m deal to build two LNG carriers

Samsung Heavy Industries (SHI) has won a contract worth around $370m from an undisclosed entity to build two 174,000m³ liquefied natural gas (LNG) carriers.

The deal, which is subject to approval from the buyer’s board of directors (BOD), covers an option for two additional vessels.

SHI expects to deliver the LNG carriers in July and October 2020, respectively.

Once developed, the carriers will feature a Mark-III Flex-type containment system with re-liquefaction to reduce boil-off gas (BOG). It will be powered by an X-DF duel-fuel engine that can use both natural gas and diesel.

Characterised by a low-pressure system, the engines are designed to ensure safe operation.

Both the vessels will be equipped with a range of fuel-saving technologies to be customised in accordance with the owner’s operational requirements.

According to the Clarksons Research report, gas carrier and containership newbuilding orders are expected to increase with a stable global economy and growth of seaborne trade.

The growth in the deployment of the new LNG carrier is set to be driven by strong LNG carrier spot rates, as well as increased use of LNG as fuel and gas in power generation, said the report.

The report has also predicted that a total of 194 LNG carriers will be ordered within the next five years, which include 37 orders so far this year.

A SHI representative said: “Energy Information Administration (EIA) stated that US’s natural gas production is to continue growth with export to Asia, especially China, in mind.

“SHI would continue leadership in LNGC newbuilding market with technological edge.”

Last month, SHI announced a tentative order for one LNG carrier to be operated by an undisclosed customer. The order also includes an option for one more carrier.