South Korea receives LNG carrier order quartet

South Korean shipbuilder Korean Shipbuilding and Offshore Engineering (KSOE) has received four new LNG carrier orders, and a single order cancellation.

The new orders are the first for LNG carriers placed with a South Korean builder so far this year, ending a seven-month streak without any orders — the longest in recent years. The last order for the construction of an LNG carrier at a South Korean shipyard was placed in December.

KSOE received the orders in two pairs, one each placed by a Bermuda-based owner and a European firm. The ordered pair of carriers from the Bermuda-based owner was valued at around 446 trillion South Korean won — equivalent to around $187mn per vessel — with delivery expected by mid-August 2023, when the contract ends.

The second order was valued at the same price, with delivery expected by June 2023, when the agreement expires. KSOE did not disclose which firms placed the orders.

KSOE received a single cancellation for a 174,000m³ LNG carrier slated for delivery in late 2021-early 2022. The order had been placed with KSOE subsidiary Hyundai Heavy Industries (HHI) in late August last year by an unnamed Australasia-based owner, and valued at around $192mn. The order was cancelled under the terms of the initial contract, KSOE said.

The cancellation and the four orders suggest that KSOE's order backlog has grown to 50 LNG carriers from 48 at the end of June, following the delivery of the 174,000m³ Flex Aurora by the firm earlier this week.

By Samuel Good