Three shipowners have inked six LNG newbuilding berths at two of South Korea’s top three shipbuilders, upping the total number of vessels ordered for the sector this year to at least 50.
TradeWinds understands that Christos Economou-led TMS Cardiff Gas has contracted two vessels at Hyundai Heavy Industries.
The berths take the Greek shipowner's LNG carrier newbuilding tally to 10 ships.
Brokers suggested the orders could be linked to business with Shell, which was due to finalise its tender for LNG vessels this week amid talk that it could take up to eight vessels.
Elsewhere, NYK Line confirmed two LNG carrier newbuildings at Hyundai Samho Heavy Industries. The Japanese shipowner was scheduled to ink time-charter contracts on the vessels with French energy majorsthis week.
It is the second pair of LNG newbuildings that NYK has ordered this year.
The company, which is able to take advantage of the French tax lease through its holdings in France, confirmed a vessel at the yard against Total business and a second at Samsung Heavy Industries against business with EDF Energy.
BW LNG confirmed an order for two 174,000-cbm newbuildings at DSME for delivery in the first half of 2021. The deal also includes four optional berths.
The new orders lift BW LNG’s fleet to 25 vessels, including two floating storage and regasification units. The company also has stakes in two additional LNG newbuildings under construction in China.
Brokers said these firm orders push the LNG newbuilding ‘totaliser’ for 2018 to 50 vessels.
Those with clients in the sector suggest more LNG orders may yet materialise before the end of the year, with companies confirming optional slots.
One broker said the buying binge on LNG carrier tonnage is helping support shipyards at a time when most other key shipping sectors, such as VLCCs and containerships, are largely devoid of fresh enquiries.
“The other two pillars are completely broken down,” a broker said, citing the US-China trade war and fluctuating oil price as factors that are stalling demand and associated newbuilding projects.
“This year is exceptional,” he added. “People are a bit optimistic because of the freight rates.”
The lack of enquiry on other vessel types appears to have helped hold down prices for LNG carriers at South Korea’s big three shipbuilders. Berths are still priced at about $185m, depending on specifications.
Some shipbuilders said the number of available slots for LNG carriers for delivery in 2021 are slimming. But others suggest berths are still available, due to the scarcity of orders elsewhere.
However, with liquefaction projects set to start discussions with shipyards next year on a range of LNG carriers, berth space is expected to fall further during 2019.
