Samsung Heavy wins orders for 4,587 billion won of LNG-promoted ultra-large crude oil

Input 2021.02.18 10:32

Samsung Heavy Industries (010140)This liquefied natural gas (LNG) fuel propulsion ship was awarded an additional order.

Samsung Heavy Industries announced on the 18th that it has received orders for four LNG-driven ultra-large crude oil carriers (VLCCs) from shipping companies in Oceania. The total contract amount is 4587 billion won. These ships are scheduled to be delivered to shipping companies one after another by June 2023.

The VLCC ordered this time is applied with eco-friendly technology to meet the regulations on the emission of air pollutants such as sulfur oxides and carbon dioxide. It is equipped with an LNG fuel supply system (S-Fugas) developed by Samsung Heavy Industries with its own technology, and various energy saving devices that reduce the frictional resistance of ships. It is expected that fuel consumption can be significantly reduced by installing a shaft generator that generates power using the torque of the propulsion engine shaft.
Within a week, Samsung Heavy Industries signed contracts to build 9 LNG fuel propulsion vessels, including five LNG-propelled container ships, and raised orders of 1.2 trillion won. Samsung Heavy Industries explained that this is because the capacity to install the’fuel supply system’, which is a key technology for promoting LNG fuel, has grown.

Gas-diesel engines of LNG fuel propulsion ships are virtually divided into’low pressure engines (X-DF)’ and high pressure engines (ME-GI). Samsung Heavy Industries is able to build not only the existing X-DF but also ME-GI by strengthening its engineering capabilities, and can build all LNG fuel propulsion vessels.

According to Clarkson Research, a UK shipbuilding market analysis company, Samsung Heavy Industries has won orders for 26 out of a total of 46 crude oil carriers for LNG fuel in the world, including this contract. It maintains the No. 1 position with 57% market share.

An official from Samsung Heavy Industries said, “The more eco-friendly regulations in the shipbuilding industry are strengthened, the more demand for LNG fuel propulsion ships will expand.” did.

To date, Samsung Heavy Industries has won orders for a total of 14 vessels, including 1 LNG carrier, 9 container ships, and 4 tanker ships, for $1.7 billion (about 1.88 trillion won), achieving 22% of this year’s order target of $7.8 billion.