South Korea’s DongHwa Entec, K Shipbuilding in LNG containership move

South Korean equipment supplier DongHwa Entec is joining forces with compatriot shipbuilder K Shipbuilding to work on new series of 8,000 TEU LNG-powered container vessels.

In that regard, the two firms signed a memorandum of understanding on January 20 to “strengthen competitiveness of medium-sized vessels in eco-friendly shipping,” according to a statement by DongHwa Entec.

Following the memorandum, K Shipbuilding would push forward to obtain approval in principle (AIP) for the 8,000 TEU class LNG-powered container ships, it said.

On the other side, DongHwa Entec said it would be responsible for engineering and actual application of LNG fuel gas supply systems.

Dongwha Entec did not provide any additional information regarding the new series.

Orders on the rise

South Korean shipbuilders, led by KSOE, DSME, and Samsung Heavy, have last year won 17.44 million CGT worth of orders, achieving the best result in eight years since 2013, according to the Ministry of Trade, Industry and Energy.

Dongwha Entec said in the statement, citing the ministry’s data, that the orders rose on increased demand for “eco-friendly” ships, including LNG-powered vessels, due to IMO’s restriction on exhaust gases.

Korean yards won 10.88 million CGT in orders for such ships, accounting for 64 percent of global orders, it said.

Besides large yards, medium-sized shipbuilders such as K Shipbuilding also boosted their orders substantially last year.

“K Shipbuilding is leading the resurrection of South Korean medium-sized shipbuilders by winning 333,000 CGT in orders, a 275 percent increase from the previous year,” the statement said.

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