LNG

Korea’s DSME delivers the world’s first icebreaking LNG carrier to Russia

South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (DSME) mostly in the news for liquidity woes demanding another multibillion-dollar public bailout on Tuesday released a positive announcement of delivering the world`s first icebreaking liquefied natural gas (LNG) carrier to Russia`s state-run shipper Sovcomflot. The South Korean shipbuilder will be paid 240 billion won ($215 million) for the first delivery for a fleet of ice-breaking tankers for the Russian company. Although icebreaker is not new, a gas tanker designed to force its way through the Arctic is the first kind. DSME was awarded with $4.8 billion contract to build 15 vessels of the kind. Each ship costs $320 million and DSME received an advance on the first supply. The payment on schedule is nevertheless a relief to...

DSME Wins Additional Orders Worth $1.4 Billion

Daewoo Shipbuilding & Marine Engineering (DSME) is about to announce that it has won additional orders worth the remaining US$1.4 billion (1.55 trillion won) out of US$2 billion (2.22 trillion won) of this year’s order forecasts, except for US$600 million (665.1 billion won) worth of the existing orders received. A senior government official said on March 27, “Contracts worth US$2 billion (2.22 trillion won) of this year’s order forecasts are already in the hands of DSME. DSME will win more new orders in the future. There should not be an error worth even US$100 million (110.85 billion won) in the forecasts this time. So, this is a conservative estimate.” DSME’s creditors unveiled their financial support plans on the 23rd, and expected that the company will receive US$2 billion (2.22 t...

Hyundai Heavy Industries Group Wins USD 240 Million Order for the World’s First LNG-fueled Aframax Tankers

Hyundai Samho Heavy Industries (HSHI), Hyundai Heavy Industries’ shipbuilding affiliate, announced today that it recently won an order to build four 114,000 DWT Ice-Class IA aframax tankers from Sovcomflot, the Russia’s state-owned shipping company. The world’s first LNG-fueled aframax tankers, measuring 250 meters in length, 44 meters in width and 21 meters in height, are scheduled to be delivered from the third quarter of 2018. By running on LNG, the Ice-Class IA tankers can emit 90% less SOx, 80% less NOx, 15% less CO2 along with 50% reduced engine noise. An HSHI official said, “We believe the winning of the world’s first LNG-fueled aframax tankers is the proof of our world’s leading eco-friendly shipbuilding technology. As the demand for eco-ships increases with tightening environmenta...

SEA\LNG, SGMF to Promote LNG as Marine Fuel

The multi-sector industry coalition SEA\LNG signed a memorandum of understanding (MoU) with the Society for Gas as a Marine Fuel (SGMF) in an effort to accelerate the adoption of liquefied natural gas (LNG) as a marine fuel. Under the MoU, the parties plan to create a framework for how to achieve their common goal of making LNG the fuel of choice for the shipping industry. “SEA\LNG and SGMF have separate but complementary missions, and we are both wholly committed to the development of natural gas as a marine fuel,” Peter Keller, SEA\LNG Chairman and Executive Vice President, Tote said. “This MoU will ensure that our efforts are concentrated on defined areas, enabling us to support each other successfully, and ultimately providing the confidence and demand required for an effective, effici...

Big 3 Shipyards Expect Higher LNG Carrier Orders

Korea’s shipbuilding industry is breaking through the slump of the overall shipbuilding market on the back of recovery of the demand for liquefied natural gas carriers.    According to industry sources on March 7, the nation’s top-three shipbuilders including Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering received orders for five LNG carriers worth 1.16 trillion won this year.   Hyundai Heavy Industries won an order for an LNG-FSRU plus a 180,000-cubic-meter LNG carrier last month. Samsung Heavy Industries clinched an order for a 170,000-cubic-meter LNG-FSRU in January, while Daewoo Shipbuilding & Marine Engineering obtained an order for two LNG carriers this month.    As the demand for LNG, an eco-friendly fuel that can...

Hyundai Heavy Industries bags deal to build LNG carrier

  Hyundai Heavy Industries Co., a major shipyard here, said Monday that it has secured a deal to build a LNG carrier, the latest in a series of its shipbuilding contracts.  Hyundai Heavy Industries did not reveal the terms of the contract, but a deal to build a 180,000-cubic meter LNG ship is valued at some US$193 million, according to industry sources. With the latest deal, Hyundai Heavy has received deals so far this year, valued at a combined $800 million to build a total of six ships, including two very large crude carriers and a floating storage and regasification unit. Hyundai Heavy closed at 166,000 won on the Seoul bourse, down 0.9 percent from the previous session’s close. The Original Posted by sam@yna.co.kr

DSME Secures Firm Order for Two LNG Carriers

Daewoo Shipbuilding & Marine Engineering, the most troubled of South Korea’s “Big Three” shipbuilders, has received a lifeline in the form of an order for up to four LNG carriers. In a stock exchange filing on Thursday, DSME announced that it had clinched an order with a European operator for two 175,000 cubic meter LNG carriers, valued at $180 million apiece. The first vessel is slated for delivery in the second half of 2019. The contract also provides options for two more vessels, bringing the potential total value to $720 million. The advance payment on the order will help the yard meet its obligations on some $380 million in debt that is due to mature in April. DSME signed a letter of intent for up to seven FSRUs for Excelerate Energy in February, but the LNG carr...

KOGAS Seeks to Win Al-Zour LNG Plant Operation & Maintenance Contract

Korea Gas Corporation (KOGAS) invited Ahmad Saleh Al-Jemaz, vice president of the natural gas and petrochemical division at Kuwait Integrated Petrochemical Industries Company, to its LNG plant in Incheon on Feb. 14, and discussed a deal for operation & maintenance of a LNG plant in Al-Zour. In March last year, a consortium of KOGAS, Hyundai Engineering and Hyundai Engineering & Construction received a contract to construct a large scale LNG plant in Al-Zour. For the the Al-Zour LNG Import Terminal Project, Kogas is responsible for test operation, creating operation manual, designing LNG tanks and purchasing equipment and materials, which is worth US$60 million (68.46 billion won) along with its affiliate, Korea Gas Technology Corporation. KOGAS invited Al-Jemaz as part of the compa...

LNG Power Plants Suffer from Low Capacity Use in Peak Winter Months

The capacity utilization of liquefied natural gas-fueled power plants has fallen to a low of 39 percent. Private power plant operators complained, “There are so many power plants left idle even during the peak winter season.” According to the Korea Power Exchange on February 15, the average capacity use of LNG power plants was 38.8 percent last year. This is the lowest level since 2005 when the exchange began collecting related data. The capacity use ratio has been on a downward spiral after peaking 67.1 percent in 2013. The main reason for the ever-declining capacity use rate has to do with the fact that the government orders power plant operators to run their plants based on power generation unit price. For this reason, coal-fired and nuclear power plants are running almost a...

Daewoo Shipbuilding wins prospective FSRU deal worth $1.6 bn deal from Excelerate Energy

Delivering what could be a life-saving deal for the financially-strapped Korean shipbuilder, Texas-based Excelerate Energy placed a preliminary order with Daewoo Shipbuilding & Marine Engineering Co. (DSME) for up to seven floating storage and regasification units (FSRUs) worth combined $1.6 billion. Excelerate Energy, the world’s largest operator of regasification vessels and developer of LNG import solutions, announced Thursday that it executed a letter of intent with the Korean shipbuilder to order one FSRU in the second quarter this year with the option for commissioning additional six vessels. The Korean shipbuilder separately issued a disclosure on the deal, but said details for the final contract have not been set. Given the timeframe and market value of the vessel designed to t...

MSC Cruises, ARTA to Develop LNG Bunkering System

Swiss-based cruise line MSC Cruises and manufacturer of gas and liquid transfer solutions ARTA have agreed to partner for the development of the LNG bunkering system for MSC Cruises ships. Under the joint program, unveiled at the 2017 LNG Bunkering Summit in Amsterdam, the parties said they would develop a tailor-made LNG bunkering system that takes full account of the cruise industry’s specific needs. MSC Cruises’ EUR 9 billion (USD 9.7 billion) investment plan for the construction of eleven new next-generation cruise ships in the next ten years will include four LNG-powered cruise ships of the World Class. To this end, the cruise company has been exploring the market for the most suitable LNG bunkering solution. “With up to four LNG-powered cruise ships scheduled to join our fleet, we ar...

Hyundai Ocean Service to Set up Joint Venture with Greek Shipowner

Hyundai Merchant Marine announced on February 1 that its subsidiary Hyundai Ocean Service signed a deal to establish a ship management joint venture with Greek shipowner Tsakos Group. The joint venture, named “Tsakos Hyundai Ship Management,” will launch full-scale operations from next year.    Under the terms of the deal, the joint venture will be responsible for offering ship management services for the Greek shipowner’s 12 ships, including LNG carriers, bulkers, and tankers. This deal would clear the way for Tsakos to save ship management cost, while enabling Hyundai Ocean Service to enjoy a stable stream of earnings.    Hyundai Ocean Service expects the contract to contribute to securing other ship management service orders from other shipping companies worldwide. The...

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