Samsung Heavy wins order for 10 LNG ships

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Samsung Heavy wins order for 10 LNG ships

Samsung Heavy Industries won orders to build 10 liquefied natural gas (LNG)-fueled ships from a shipping line from Oceania, it said Monday.

The order is worth 751.3 billion won ($620.1 million).

The shipbuilder said it will deliver 10 Aframax ships with deadweight tonnage (DWT) of 113,000 by January 2022. The Aframax ship is an oil tanker smaller than 120,000 DWT.

According to Samsung Heavy, using LNG as fuel rather than existing diesel fuel cuts down on sulfur oxide emissions by 99 percent, nitrogen oxide by 85 percent and carbon dioxide by 25 percent.

As ships have to use marine fuel with a sulfur content of no more than 0.5 percent from January 2020, a huge cut from the current limit of 3.5 percent following guidelines from the International Maritime Organization, changing to LNG-powered ships is cited as one major solution for shipping lines, according to the shipbuilder.

Korea Trade-Investment Promotion Agency projected LNG-powered ships to account for 60.3 percent of the new ships ordered by 2025, growing from 7.6 percent in 2017, in its April report referring to data collected from market trackers Clarksons Research, DNV GL and Lloyd.

With the latest order, Samsung Heavy has inked orders to build a total of 29 ships worth $4.2 billion this year, achieving 54 percent of its proposed target of $7.8 billion. Among the 29 ships are 11 LNG carriers, 14 oil tankers and two petroleum product tankers.

“We hope to take leadership in the eco-friendly ship market by continuous development of technologies and cutting costs,” a spokesperson from Samsung Heavy said.

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

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