Korea's three shipbuilders have won orders for 10 liquefied natural gas (LNG) carriers so far this month, extending their streak in high value-added ship types. As North American LNG export projects pick up speed, competition among shipping companies to secure vessels to lock in 2029–2030 delivery slots (space in docks for building and launching ships) is expected to intensify.
According to the shipbuilding industry on the 19th, Korea's three shipbuilders won orders for a total of 10 LNG carriers worth 3.7303 trillion won this month. HD Hyundai-affiliated shipbuilders captured four of them. HD Hyundai Samho won an order on the 12th from a North American shipowner for two LNG carriers for 748.5 billion won, and the next day HD Hyundai Heavy Industries also signed a contract with Oceania-based shipowner Hayfin to build two LNG carriers worth 743.9 billion won.
Samsung Heavy Industries secured five LNG carriers this month alone. On the 13th, it signed a contract with Greek shipowner TMS Cardiff Gas for two LNG carriers worth 750.5 billion won, followed on the 15th by an additional order for three LNG carriers worth 1.1242 trillion won. Hanwha Ocean also won an order on the 8th from Norwegian shipping company Knutsen for one LNG carrier worth 363.2 billion won.
All 10 vessels are scheduled for delivery between late March and late July 2029. The order price per LNG carrier is $250 million–$254 million, above the market average of $248.5 million.
◇ North American LNG projects accelerate … orders expected in the second half
The industry expects more LNG carrier orders this year. Global cumulative LNG carrier orders this year already total 47, surpassing last year's annual total of 38. In addition, LNG export projects are being promoted in succession in the United States, Canada, Argentina and Africa, heightening expectations for additional vessel demand. In particular, large-scale projects in North America targeting operations around 2030 are taking concrete shape.
A representative case is the Commonwealth LNG project in Louisiana, United States. Cautus, a natural gas production and liquefaction developer, made a final investment decision (FID) on the 15th for the project and completed financing for construction. As a result, an LNG export terminal with an annual capacity of 9.5 million tons will be built in Cameron Parish, Louisiana, targeting operations in 2030. The industry sees demand for about 20 LNG carriers from this project alone.
Additional orders are also increasingly expected in Canada. LNG Canada, led by global energy corporations Shell, is nearing completion of phase one facilities with an annual capacity of 14 million tons and is pushing to decide by the end of this year on a phase two expansion to double production capacity. If the expansion is confirmed, LNG volumes crossing the Pacific to Asia would increase, translating into demand for carriers.
Accordingly, the shipbroking sector sees a strong possibility that shipowners seeking 2029–2030 delivery slots will place large-scale orders in the second half of this year. Because LNG carriers take more than three years to build, the more LNG projects scheduled to start up around 2030, the earlier shipowners may place orders. An industry official said, "Orders at domestic shipbuilders are already filled through early to mid-2029, so moves to secure the remaining slots are likely to accelerate."
◇ China's chase is quickening, but Korea leads in high value-added ship types
For domestic shipbuilders focused on high value-added vessels, increased LNG carrier orders are an opportunity. But the chase by Chinese shipbuilders is a variable. China has built experience in LNG carrier construction centered on Hudong–Zhonghua Shipbuilding under China State Shipbuilding Corporation (CSSC), the largest state-owned shipbuilding group, and more recently China Merchants Industry has also entered large LNG carrier construction. Last month, the company delivered an 180,000-cubic-meter-class vessel, the largest among LNG carriers designed and built domestically in China.
According to Clarksons Research, a U.K.-based shipbuilding and shipping market analysis firm, China's LNG carrier order share so far this year is about 40%, trailing Korea (about 60%). Considering that last year's order shares were 92% for Korea and 8% for China, Chinese shipyards have gained presence.
However, looking at the composition of new orders at Chinese shipbuilders, they are concentrated in container ships (40.5%), tankers (26.2%) and bulk carriers (20.4%). Unlike Korean shipbuilders, which are selectively taking orders centered on LNG carriers and eco-friendly ships, China is stacking orders for ship types suited to mass construction with quick delivery. An industry official said, "In high value-added ship types like LNG carriers, where quality verification and long-term operational stability are critical, global shipowners show a strong preference for Korean shipbuilders," adding, "Even if initial prices are more than 10% higher than at Chinese shipyards, we explain to owners that, considering life-cycle costs including fuel efficiency, operational stability and delivery reliability, we are competitive."