Samsung Heavy Industries (010140) has won orders for two more liquefied natural gas carriers, raising its LNG carrier orders this year to 20 vessels. By concentrating on high-value LNG carriers, the shipbuilder has already exceeded its annual order target for the commercial vessel division.
Samsung Heavy Industries said in a regulatory filing on the 2nd that it had won an order for two LNG carriers from an Asian shipowner for 672.2 billion won and plans to deliver them by May 2029. With the latest deal, the company's commercial vessel orders this year total $8 billion, or 140% of its annual target of $5.7 billion.
By vessel type, the orders comprise 20 LNG carriers, including one LNG floating storage and regasification unit (LNG-FSRU), along with two ethane carriers, six gas carriers, four container ships and 14 crude oil tankers, for a total of 46 vessels.
Adding $4.4 billion in offshore orders, including two floating liquefied natural gas production facilities (FLNG), the company's cumulative orders this year come to 48 vessels worth $12.4 billion. That is 89% of the $13.9 billion order target it set early in the year.
Behind Samsung Heavy Industries' sweep of LNG carrier orders from global shipping companies is the production capacity of the third dock at its Geoje shipyard. The dock, measuring 640 meters long and 97.5 meters wide, can build four large LNG carriers at the same time. The company says this allows it to meet delivery schedules reliably even with large order volumes.
Samsung Heavy Industries is also accelerating work on a smart shipyard built on what it calls a 3X transformation spanning digital technology, artificial intelligence and robotics, aimed at improving production efficiency and quality. In July, the company announced a plan to invest 10 trillion won in its Geoje complex to create a base for building advanced high-value vessels and offshore infrastructure.
"We play a central role in the global LNG value chain, from LNG carriers to FLNG," an official at Samsung Heavy Industries said. "We will lead the market with differentiated technology and construction competitiveness."
