HD KSOE, Samsung Heavy Industries Land Eco-friendly Ship Orders


HD Korea Shipbuilding & Offshore Engineering (KSOE) and Samsung Heavy Industries announced on Jan. 18 that they have won two orders for very large ammonia carriers (VLACs) side by side. As demand for ammonia, an eco-friendly energy, is rising, more shipping companies are preparing to transport it by sea. Many experts predict that orders for eco-friendly ships such as ammonia and methanol carriers will expand beginning from this year in earnest.

On the same day, HD KSOE recently signed a contract with an Oceania-based shipping company for the construction of two ultra-large ammonia carriers. The order is worth 33 billion won and will be built by HD HHI and delivered by April 2027. To date, HD KSOE has received a total of 29 orders worth US$2.64 billion, achieving 19.5 percent of its annual order intake target of US$13.5 billion. This year, HD KSOE has received orders for 12 liquefied petroleum gas (LPG) and ammonia carriers.

Samsung Heavy Industries also won a 315-billion-won order for two ultra-large ammonia carriers with an Oceania-based shipping company. They will be delivered sequentially to the client by November 2027. With this contract, the company’s order backlog for ammonia carriers has increased to six, including VLGCs for both ammonia and liquefied petroleum gas.

Until the end of 2023, demand for liquefied natural gas (LNG) carriers surged and provided work to Korean shipyards. But this year, many experts say that Korean shipbuilders will post an increase in orders for ships that transport eco-friendly energy such as ammonia carriers and liquefied carbon dioxide (LOC2) carriers. Eco-friendly ships, such as ammonia carriers, tend to be more expensive than conventional LPG carriers.

Note: Article by Michael Herh - Businesskorea (https://www.businesskorea.co.kr)

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