According to the industry on May 5, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries each secured orders a day earlier from shipowners in different regions for energy-related vessels.
HD Korea Shipbuilding & Offshore Engineering won an order from KSS Shipping for three very large gas carriers, or VLGCs, worth about 500 billion won. VLGCs, which transport LPG, are seen as a steady-demand segment as global gas trade expands.
Hanwha Ocean secured an order worth about 500 billion won from an Africa-based shipowner for three very large ammonia carriers, or VLACs. Ammonia is drawing attention as a next-generation carbon-free fuel, and demand for transport is expected to grow.
Samsung Heavy Industries signed a contract worth about 480 billion won with an Asia-based shipowner to build one floating storage and regasification unit, or FSRU. An FSRU stores LNG and converts it back into gas for supply, serving as an offshore terminal that can be built faster than an onshore terminal. It is also widely used as a tool to respond to power supply needs.
The latest orders are notable not only for the range of vessel types but also because customers now include Africa, a sign that energy demand is spreading more broadly across regions rather than concentrating on specific fuels or markets, the industry said.
With power demand rising alongside the spread of artificial intelligence data centers, demand for LNG-based power generation is increasing, while transport demand for other fuels such as LPG and ammonia is also growing. As a result, shipbuilders are expanding from transport vessels into parts of offshore storage and supply facilities.
Clarksons Research said its newbuilding price index, a benchmark for ship prices, has recently climbed above 180 and continues to rise. The trend suggests a seller’s market is becoming entrenched as shipbuilders, backed by solid order backlogs, focus on high value-added vessels. The high per-ship prices in the latest deals have fueled assessments that the three shipbuilders are moving into a phase of higher-quality growth centered on energy-related vessels.
“Domestic shipbuilders are widening their order portfolios around high value-added ships,” an industry official said. “After selective ordering strategies were reflected in strong results, we expect the trend of improving profitability to continue.”
* This article has been translated by AI.
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