Demand for LNG boosts shipbuilding

Samsung Heavy Industries said it had won a massive order for LNG carriers from BG and RasGas. Three 145,000-cbm LNG carriers plus four more options from BG and two LNG carriers from RasGas in Qatar puts the contract value, including four options, at $1.38 billion.

A consortium of MOL, NYK and K Line ordered two LNG carriers, which will product from Qatar to Europe and North America. Peninsula LNG Transport jointly established by four companies including Qatar Shipping ordered three LNG carriers plus four options. The shipbuilder said that LNG demand, which is cheaper against other energy products, has sharply increased particularly from US and China. In addition, world LNG consumption will increase to 230 million tons in 2010 from 120 million tons this year, an eight to ten percent increase per year. Newbuilding demand of LNG carriers will be 20 ships per year.

With the addition of the latest new order, Samsung Heavy Industries said that its new order value from commercial shipbuilding and offshore plant is over $5 billion to date this year and its order book of $9 billion. The Koje-based shipbuilder will achieve new order of more than $6 billion this year.