South Korean shipbuilders surge on behemoth Qatar LNG deal

Shares of South Korean shipbuilders surged on Tuesday following a landmark deal for Qatari liquefied natural gas carriers.

LNG producing giant Qatar Petroleum said on Monday it signed deals with South Korea’s biggest three shipbuilders to secure more than 100 vessels worth about $19.2 billion.

This is the largest shipbuilding deal in the history of the LNG industry whereas QP secured about 60 percent of the global LNG shipbuilding capacity through 2027.

Boosted by the big announcement, Daewoo Shipbuilding & Marine Engineering shares on Tuesday shot up 14.41 percent while Samsung Heavy shares rose 18.27 per cent.

Shares of Korea Shipbuilding & Offshore Engineering that owns Hyundai Heavy increased by 6.40 percent.

These orders are a huge boost for the trio as the shipbuilding industry has been significantly affected by the Covid-19 coronavirus pandemic.

The three shipbuilders saw a significant decline in their order books this year due to owners holding back on orders as global energy demand nosedived and oil prices hit record lows.

Korean shipyards are the biggest builders of LNG carriers winning more than 90 percent of carrier orders in 2019.

They also secured the entire order for 53 LNG carriers from Qatar back in 2004.

Breakdown of the newest order by shipbuilder is yet to be seen as QP did not reveal this info in its announcement.

Most Popular

Fluor, JGC score FEED job for LNG Canada expansion

A joint venture of US engineer Fluor and Japan's JGC has been awarded the contract to update the front-end engineering and design (FEED) for a proposed Phase 2 expansion of the Shell-led LNG Canada project.

Venture Global’s Plaquemines LNG to commission fourth tank

US LNG exporter Venture Global LNG has received approval from the US FERC to commission the fourth storage tank with LNG at its Plaquemines plant in Louisiana.

Inpex launches Abadi LNG FEED work

Japan's Inpex has launched the front-end engineering design (FEED) work for the Abadi LNG project in Indonesia. The contractors include Technip Energies, JGC, Saipem, Tripatra, McDermott, and Worley.

More News Like This

Hanwha Ocean says recovery in LNG newbuild market led by US projects

South Korean shipbuilder Hanwha Ocean expects the recovery in the LNG newbuilding market to be led by US export projects and the phase-out of steam LNG carriers.

Knutsen takes delivery of QatarEnergy LNG carrier

Norwegian shipowner Knutsen has taken delivery of another 174,000-cbm liquefied natural gas (LNG) carrier built as part of the massive QatarEnergy shipbuilding program.

HD Hyundai Heavy kicks off work on Gdansk FSRU

South Korean shipbuilder HD Hyundai Heavy Industries has officially started building MOL's floating storage and regasification unit (FSRU), which will serve Gaz-System's Gdansk LNG project in Poland.

Samsung Heavy lays keel for Minerva LNG tanker

South Korea’s Samsung Heavy Industries has laid the keel for a 174,000-cbm LNG carrier being built for Greek firm Minerva Gas, a unit of Minerva Marine.