대한조선주식회사

Daehan Shipbuilding won orders for 6 115,000 ton LNG fueled tankers

 ▶ Due to COVID-19, the ceremony for an LNG fueled ship contract of Daehan Shipbuilding-Chakos was held in a non-face-to-face-to-face. (The left is the executives of Daehan shipbuilding who participated in the contract ceremony, and the right is the representative of each company signing the contract.)
 
On September 2nd, Daehan Shipbuilding won six LNG-fueled 115,000-ton tankers (including four Aframax-class crude oil carriers and two optional LR2 product carriers) from Tsakos Energy Navigation (TEN).
 
This order is significant to Daehan Shipbuilding because it has been delaying effort to order for about four months as cost rising of steel prices nearly doubled compared to last year, resumed order activities through high value-added ship orders. In addition, the amount of orders received is about 500 billion won, including options, the largest since the founding of the Daehan Shipbuilding.
 
In the case of ships ordered this time, will be built to LNG fueled ships (Dual Fuel). LNG fueled ships are that can use LNG and bunker C oil as fuel at the same time. Due to its low carbon emissions, it is considered one of the representative eco-friendly ships.
 
Meanwhile, ships ordered to Daehan Shipbuilding will begin production in September 2022 and will be delivered one after another from September to December 2023.
 
This order is important to Daehan Shipbuilding in two aspects. First, it entered the high value-added ship market by the steady development of eco-ship technology. Second, it can get this order to make strong trust relationships with ship owners.
 
Daehan Shipbuilding completed technology development for LNG-fueled ships in 2018. And recently, it has been making efforts to develop eco-ship technology by acquiring AIP of LNG bunkering ships and AIP of small LPG carriers and cooperating with LR and ABS.
 
As a result of building a trust relationship with TEN through good quality in building processes of the HN5033, delivered in 2019, Daehan Shipbuilding was able to win orders for LNG fueled ships following the first shuttle tanker.
 
Currently, LNG-fueled ships are emerging as promising products for the shipbuilding market with the strengthening of environmental regulations by the International Maritime Organization (IMO). From 2020, IMO has significantly strengthened the upper limit of sulfur oxide emission quantity in fuel oil for ships from 3.5% to 0.5%.
 
LNG-fueled ships have been expected to lead the eco-ship market before the development of ammonia ships, as they have been considered the most efficient way to replace existing ships. Therefore, securing orders for LNG-fueled ships is an important task for securing the future competitiveness of Korea Shipbuilding.
 
An official from Daehan Shipbuilding said, "This order of Daehan Shipbuilding is the fruition of efforts on eco-ships and proves that they have technology comparable to that of major shipyards. It is also expected to be a turning point for sustainable growth in the future, he said.