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Green light for Samsung Heavy’s LNG VLCC

June 08,2019
Samsung Heavy Industries’ very large crude carrier that runs on liquefied natural gas (LNG) has gotten the green light.

The company earned approval in principle for the 300,000-ton ship from Lloyd’s Register, an international provider of classification and consultancy services for the marine industry, on Thursday. The approval means the technology and design of the LNG-powered ship are appropriate for the shipbuilder to begin sales of the ship, according to Samsung Heavy.

The ship, powered by eco-friendly LNG, is Samsung Heavy’s response to tightening emissions regulations in the industry. Under rules by the International Maritime Organization, ships have to use marine fuel with sulfur content of no more than 0.5 percent from January 2020, a major change from the current limit of 3.5 percent. The Korean company said the ship is also designed to be more fuel-efficient than previous ships, which reduces operating costs.

“We will actively target the shipbuilding market with our new eco-friendly ship that can also greatly cut operation costs,” a spokesperson from Samsung Heavy said. “We will raise our competitiveness in bids by cutting down on production costs and localizing parts.”

The company also announced that it won orders to build two LNG carriers worth $380 million from a shipping line based in Bermuda.

The ships will be delivered by the end of June 2022.

With the latest deal, the shipbuilder has landed $3 billion in orders, roughly 38 percent of the company’s annual target of $7.8 billion. Most of the orders were for LNG carriers, according to the shipbuilder.

“As Qatar and Mozambique are preparing to make ship orders for massive development projects, we will aggressively tackle the projects to maintain leadership in the LNG carrier market,” the company said in a statement.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]


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