Daewoo Shipbuilding Gets $360mn LNG Carrier Order

Troubled South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has received an order from European ship-owners to build two LNG carriers with capacity of 173,400 m³ with an option for two additional vessels. The company did not disclose the name of the European ship-owners.

If the two additional orders materialise, the value of the contract will be Korean won 830bn ($720mn). Norwegian shipping company Frontline also agreed to acquire two large-scale crude oil carrier (VLCC) vessels, which were cancelled in August last year. This will take the order size to over Korean won 1 trillion, DSME said March 2.

DSME vessel built for Kogas' Sabine Pass 2mn mt/yr contract 

(Credit: DSME)

Company president Chung Sung-ri said the market for LNG carriers and floating storage and regasification units (FSRUs) is coming back to life and DSME will increase focus on the segment. He also dismissed reports of the company’s uncompetitiveness and viability. Last month, DSME and Excelerate Energy executed a letter of intent for the delivery of up to seven FSRUs. The LoI gives Excelerate the ability to order one FSRU in the second quarter 2017.

Shardul Sharma