SHI inks deal to build very large ships

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SHI inks deal to build very large ships

Samsung Heavy Industries announced in a statement Tuesday it will build a pair of liquefied natural gas-fueled very large crude oil carriers (VLCC) for a shipping company in Bermuda.

The 253.6 billion won ($226 million) deal calls for the shipbuilder to deliver the carriers by April 2022.

The oil carriers include a natural gas fueling system independently developed by Samsung Heavy. The system produces 99 percent less sulfur oxide than a conventional diesel fuel engine, as well as 85 percent less nitrogen oxide and 25 less percent carbon dioxide, according to the shipbuilder.

The more environmentally friendly system is intended to comply with the International Maritime Organization’s 2020 marine fuel regulation, which mainly targets sulfur oxide.

The ships will also include energy-saving devices to increase fuel efficiency, and a “smart ship solution” to lower fuel consumption.

“Only 100,000 ton, mid-sized crude oil carriers were fueled by natural gas, but the latest order has set a turning point in that natural gas will be used to fuel large crude oil carriers,” a Samsung Heavy spokesperson said in a statement.

The Korean shipbuilder will hold a 54 percent share in the crude oil carriers, according to the company.

Samsung’s goal is to secure $8.4 billion in orders this year. So far the company has only signed $500 million worth.

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