HHI clinches bumper $630m gas and tanker newbuild orders

Hyundai Heavy Industries (HHI) has announced on Sunday an order win for a 174,000-cu m LNG carrier, bringing its recent newbuilding orders to a total value of KRW700bn ($630m).

With this latest LNG carrier contract from a Greek shipowner, the South Korean shipyard has clinched five orders in two weeks, worth KRW700bn.

Earlier this month, HHI secured orders to build a LNG carrier from a Japanese shipowner, followed by an order to build a LPG carrier from a Korean shipping company and orders to construct two oil tankers for a Greek company.

HHI said the latest LNG carrier newbuild will be equipped with a Hi-ALS self-developed air lubrication system on the bottom of the hull to improve fuel consumption. The air lubrication system is expected to cut fuel consumption by 8%.

“Demand for LNG vessels is rising steadily as environmental regulations are forcing shipping companies to replace old ships with new ones,” a HHI official was reported saying. “We will continue to lead the industry based on our differentiated technologies.”

According to Clarkson Research, LNG carrier orders globally are projected to reach 69 units this year, up from 65 in 2018 and 17 in 2017. Demand is being driven in part by China’s growing use of LNG and an increasing adoption of LNG globally as a more environmentally friendly fuel.

Between 2020 to 2027, 63 LNG carriers are expected to be ordered on average each year.

According to a DNV GL forecast, LNG as ship fuel is expected to take up 12% of shipping’s energy mix by 2030 before increasing further to 23% by 2050.

Read more: Shipping forecast to use more non-fossil fuels by 2050

Posted 15 April 2019

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Lee Hong Liang

Asia Correspondent

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