Image: HD Hyundai

[LNG prime/ May 2, 2023] South Korean shipbuilder Hyundai Heavy Industries(HHI) has won two contracts to build six liquefied natural gas (LNG) carriers worth about $1.6 billion. Parent HD Korea Shipbuilding & Offshore Engineering revealed these two contracts on Tuesday in a statement and two fillings to the stock exchange.

< Under the first contract >

HHI will build two LNG carriers for an owner based in Oceania and deliver the vessels by November 2027. This contract is worth 742.3 billion won ($555 million) or about $277.5 million per vessel, which is a record price but the vessels in question have a higher capacity. 

KSOE said in the separate statement that the two LNG carriers will have a capacity of 200,000 cbm.

Greece’s Dynagas is likely behind this order for the vessels with this capacity.  Earlier this year, Dynagas ordered three 200,000-cbm LNG carriers at HHI for about $261 million per vessel.  Dynagas also ordered four 200,000-cbm LNG carriers at HHI in 2021 and three 200,000-cbm vessels last year.

< Second order >

As per the second order, HHI will build four 174,000-cbm LNG carriers and deliver the vessels to a European owner by September 2027. 

Moreover, these four vessels are worth 1.408 trillion won ($1.05 billion) or some $262 million per vessel, which is one of the highest prices ever for 174,000-cbm LNG carriers, if not the highest ever. 

Shipbuilding contracts have been signed by Japanese owner NYK Line for four LNG carrier new-buildings ordered against contracts backed by charters with German utility EnBW.​

KSOE said these vessels will feature its LNG reliquefaction system, Hi-ERSN, and its air lubrication system, Hi-ALS.

<Others>

Besides the LNG carrriers, the group and its units have recently secured orders for six LPG carriers. According to KSOE, these orders for 12 vessels are worth about 2.79 trillion won ($2.08 billion).