K-Shipbuilding Sweeps Half of 'LNG Bunkering Ship' Orders... Will It Increase?

[Financial News] It has been revealed that K-Shipbuilding has swept half of this year's global orders for LNG bunkering ships, known as 'floating gas stations'. The demand for LNG bunkering ships is increasing to respond to the demand for eco-friendly ships due to the strengthening of global carbon emission regulations.
According to the monthly market trends of the Korea LNG Bunkering Industry Association on the 27th, the operation scale of LNG bunkering ships is expected to increase from 64 ships as of last March to about 90 ships by 2028. They play a role in supplying LNG from ship to ship, which can increase the efficiency of ship operation by delivering large amounts of fuel at sea without docking.
The expansion of LNG bunkering ship demand is closely related to the increase in LNG-powered ship orders as the International Maritime Organization (IMO) continues to strengthen ship emission gas regulations. Shipping companies must reduce carbon emissions by up to 43% compared to 2008 by 2035 to avoid the IMO's carbon tax. Accordingly, the number of LNG-powered ships worldwide is expected to increase from 647 ships last year to 1,334 ships by 2033.
As a result, the price of LNG bunkering ships is also continuously rising. Last March, it increased by 31.6% to $807 per ton compared to the same period last year ($613). This is the background for the shipbuilding industry's focus on the possibility of improving profitability and increasing order volumes.
HD Korea Shipbuilding & Offshore Engineering signed a contract this month with a European shipping company for two 18,000-ton class ships. In February, it also signed a contract for four ships worth 538.3 billion won with an African shipping company.
HJ Heavy Industries won an order for one LNG bunkering ship worth 127.1 billion won in February. In other words, the domestic shipbuilding industry has achieved results by winning about half of the 15 global order volumes this year.
The industry is paying attention to the Trump administration's second term LNG policy, which is expected to grow the mid-to-long-term LNG bunkering ship market. In addition, the preference for Korean shipbuilders is becoming more pronounced as the pressure on Chinese shipbuilders increases, so future benefits are expected.
hoya0222@fnnews.com Kim Dong-ho reporter