Japanese and South Korean shipbuilders are expanding their countries' fleets of liquefied natural gas carriers.
Agreements signed or implemented in 1992 will mean significant LNG carrier activity for shipbuilders this decade in the two nations expected to account for the biggest share of LNG demand growth by 2000 and beyond.
JAPANESE FLEET
Last year, Ishikawajima-Harima Heavy Industries (IHI) and Sumitomo Heavy Industries Ltd. signed a 10 year joint venture agreement to build LNG tankers. The vessels are to incorporate IHI technology that enables a carrier to transport LNG at - 162 C. in square tanks below deck.
The venture represents an entry into the growing market for Sumitomo, which has no experience in building LNG carriers. IHI said it needed a partner to build the vessels quickly in a rapidly expanding and increasingly competitive market.
The two will jointly solicit orders for the vessels, expected to cost about $269 million apiece. Much of the business is expected to be generated under major contracts to transport LNG from Qatar and Abu Dhabi that could generate orders for as many as 14 carriers.
The IHI-Sumitomo combine follows similar joint ventures among Japan's top shipbuilders.
Mitsubishi Heavy Industries Ltd. joined with Kawasaki Heavy Industries Ltd. and Mitsui Engineering & Shipbuilding Co. to build LNG carriers based on a design by Norway's Moss Rosenberg Verft AS that incorporates spherical aluminum tanks. NKK Corp. and Hitachi Zosen Corp. are jointly producing LNG carriers with a stainless steel square tank design developed by France's Ste. Nouvelle Technigaz.
SOUTH KOREAN FLEET
South Korea's surging demand for LNG spawned an expansion of its LNG carrier fleet.
Korea Gas Corp. (KGC) last fall let contract to a combine of Hanjin Heavy Industries Co. Ltd. and Daewoo Shipbuilding & Heavy Machinery Ltd. to build its third LNG carrier. The 60,000 dwt vessel, at a capacity of 130,000 cu m, will cost $250-300 million.
Hanjin, Daewoo, and Samsung Heavy Industries Co. Ltd., each bid individually for the contract. State owned KGC chose to award the contract to two companies to ensure as many South Korean yards as possible are exposed to advanced technology involved in LNG tanker construction.
South Korea's top shipbuilder, Hyundai Heavy Industries Co. Ltd., won an earlier contract for KGC's first two LNG carriers. Construction of the first of those is under way.
Shipping industry analysts predict South Korea will need as many as 10 dedicated LNG carriers. The country accounts for 25% of the world shipbuilding capacity, second to Japan's 40% share, and has been keen to enter the high value LNG carrier market.
Copyright 1993 Oil & Gas Journal. All Rights Reserved.
