With the finalization of Samsung Heavy Industries’ latest order for 6 LNG carriers, the total number of new large LNG carrier orders globally this year has finally exceeded 10. South Korean shipbuilders have secured nearly all of these orders, while Chinese shipbuilders have yet to secure any new orders in this high-end vessel segment this year.
On August 18, Samsung Heavy Industries announced that it had secured an order for 6 large LNG carriers from two shipowners in the Oceania region for 2.1 trillion KRW (approximately $1.518 billion or 10.9 billion RMB), with each vessel costing around $253 million. These 6 new vessels will be delivered to the shipowners by November 2028.
For reference, Clarksons’ data shows that the current newbuilding price for a 174,000 cubic meter LNG carrier is approximately $250 million, a 4% decline from $262 million during the same period last year.
Samsung Heavy Industries did not disclose specific details about the shipowners, but according to foreign media reports, 4 of the LNG carriers were ordered by Greek shipowner TMS Cardiff Gas, while the other 2 were ordered by Danish shipowner Celsius Shipping.
Both shipowners are long-standing clients of Samsung Heavy Industries. Celsius Shipping had just ordered one 180,000 cubic meter LNG carrier from Samsung Heavy Industries earlier this year. According to Clarksons’ data, all of the LNG carriers currently operated by Celsius Shipping were built and delivered by Samsung Heavy Industries. Excluding the latest order, the company has 9 vessels on order, with 3 built by Samsung Heavy Industries and 6 by China Merchants Industry.
TMS Cardiff Gas currently operates 20 LNG carriers, all built by South Korea’s three major shipbuilders: 5 by Samsung Heavy Industries, 4 by Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean), and 11 by HD Hyundai Heavy Industries. Excluding the latest order, the company has 10 vessels on order, including 4 88,000 cubic meter very large ammonia carriers (VLACs) and 1 LNG carrier built by Samsung Heavy Industries.
The latest 6 vessels mark Samsung Heavy Industries’ second LNG carrier order this year. Notably, in January, Samsung Heavy Industries secured an order from Celsius Shipping for one 180,000 cubic meter large LNG carrier at a cost of approximately $263 million, $10 million higher than the latest order. This vessel is scheduled for delivery to the shipowner by June 2027.
Celsius Shipping has confirmed a long-term charter contract with Japan’s largest power company, JERA, for this new vessel. The ship will be equipped with WinGD’s latest X-DF 2.2 propulsion system, offering the lowest fuel consumption and emissions per unit of cargo in the industry.
Including the latest 6 LNG carriers, Samsung Heavy Industries has secured orders for 25 vessels worth $4.8 billion (approximately 34.464 billion RMB) this year, achieving 49% of its annual order target of $9.8 billion. These 25 orders consist of 7 LNG carriers, 9 shuttle tankers, 2 very large ethane carriers (VLECs), 4 crude oil carriers, 2 container ships, and 1 front-end engineering contract for an FLNG (floating liquefied natural gas production storage and offloading unit).
In the commercial vessel sector, Samsung Heavy Industries has secured orders for 24 vessels worth $4.1 billion, achieving 70% of its annual target of $5.8 billion. In the offshore sector, after signing a $700 million front-end engineering contract for an FLNG with an African shipowner in July, the company is advancing toward a formal contract and aims to secure one more FLNG order by year-end to meet its target.
Including the latest 6 LNG carriers, Samsung Heavy Industries’ current LNG carrier order backlog stands at 89 vessels, with a total value of approximately $20.365 billion (about 146.2 billion RMB), solidifying its position as a global top-tier player in the LNG carrier market.
Samsung Heavy Industries stated that medium- to long-term demand for LNG carriers and other gas carriers will remain robust. The company is in negotiations with shipowners for multiple LNG carrier and eco-friendly container ship projects, along with discussions for new FLNG projects, and expects to achieve its annual order target this year.
A Samsung Heavy Industries representative said, “With the International Maritime Organization (IMO) deciding to introduce a global maritime carbon tax, demand for eco-friendly vessels is expected to continue. Based on our strong order backlog, we will maintain our profitability-focused selective order strategy.”
Including Samsung Heavy Industries’ latest order, new orders for large LNG carriers this year have finally surpassed 10. The LNG carrier newbuilding market has cooled significantly this year. According to Clarksons’ data, global orders for large LNG carriers this year stand at only 9, nearly all secured by South Korean shipbuilders: 5 by HD Korea Shipbuilding & Offshore Engineering, 2 by Hanwha Ocean, and 1 by Samsung Heavy Industries. Additionally, Hanwha Philly Shipyard (formerly Philly Shipyard) secured the first U.S. LNG carrier order in 50 years in July, though the actual construction will be subcontracted to Hanwha Ocean.
In contrast, in the first seven months of last year, with the activation of QatarEnergy’s “100-ship program” Phase II orders, global orders for large LNG carriers reached 64. This year, orders in the same period plummeted to fewer than 10, marking the lowest since the first seven months of 2020, when only 7 orders were placed.
South Korean industry experts had previously anticipated that LNG hub projects being advanced by various countries in 2025 would drive demand for LNG carriers. This is because increased LNG export hubs lead to higher LNG production, expanding the need for LNG carriers. South Korea’s shipbuilding industry holds a competitive edge in LNG carriers, with projections for 88 orders in 2025—a significant increase from 51 in 2023 and an estimated 49 in 2024, and the highest since 119 orders in 2022. However, at the current order level, South Korean shipbuilders’ LNG carrier orders this year are far below expectations.
Meanwhile, Chinese shipbuilders have yet to secure any large LNG carrier orders this year. However, in the first half of the year, reports emerged that Greek shipping company GasLog had signed a letter of intent with Jiangnan Shipyard to build 2+2 LNG carriers. If finalized, this would mark GasLog’s first LNG carrier order with a Chinese shipbuilder, as all its previous large LNG carriers were built by South Korean shipyards.
