Samsung Heavy books $100 million LNG carrier order

MAY 23, 2017 — South Korea’s Samsung Heavy Industries Co., Ltd. has won a $100 million contract to build two 7,500 cu.m LNG carriers for Kogas.

Kogas will use the vessels to transport LNG from Tongyeong, Gyeongsangnam-do, to Jeju Island and one of them will be built with LNG bunkering capability.

They will utilize the KC-1 containment system, designed in Korea by Kogas in cooperation with the country’s “Big Three” shipbuilders.

Samsung Heavy sees the contract as a significant milestone that extends its record in KC-1 LNG carriers and takes into the market for small-scale LNG carriers and LNG-bunkering vessels.

Increasing LNG demand in China and Southeast Asia is expected to increase the demand for near-sea transport utilizing small-scale LNGCs, while the 0.1% SOx regulation starting in 2020 will increase demand for LNG-fueled vessels and thus for LNG bunkering vessels.

Samsung Heavy has won a total of $2.3 billion worth of orders this year, including eight tankers, two LNGCs, one LNG-FSRU, and one Floating Production Unit(FPU).