Hanwha Ocean’s H1 orders soar on high-value LNG vessels

Korean shipbuilding and offshore company Hanwha Ocean said Tuesday that it has secured some $5.07 billion in orders in the first half of this year with a strategic focus on high-value vessels such as LNG carriers.

Under the contracts, Hanwha will build 26 high value-added ships – 16 LNG ships, two very large ammonia carriers (VLAC), one very large gas carrier (VLGC) and 7 very large crude oil carriers (VLCC) – scoring the highest contract amount in the merchant ship sector among domestic shipyards.

The contracts for LNG ships in the first six months of this year already surpassed last year's total. According to the company, it has constructed 180 out of 707 LNG carriers globally, more than any other international shipyard.

Hanwha Ocean has a production capacity of 22 LNG ships per year, the highest within the industry. The company is set to build 22 LNG carriers this year and 24 next year, with the first dock at its Geoje shipyard constructing four LNG ships simultaneously. As the proportion of LNG carrier sales has continually increased, the shipbuilder’s second-quarter sales rose by 11.1 percent on-quarter.

Hanwha has also focused on eco-friendly ship technology to minimize its environmental impact. The company was the first to build LNG-RV, LNG-FSRU and icebreaking LNG carriers, and has developed a ship model with gas turbine generators powered entirely by ammonia. Last year, the shipbuilder received approval in principle from the American Bureau of Shipping for the world’s first zero-carbon LNG carriers.

Hanwha Ocean has suggested eco-friendly solutions to deal with the environmental regulations of the International Maritime Organization. The firm has developed new products featuring advanced technology, such as Smart Ship, which monitors a ship’s carbon intensity index.

In addition, the company has invested in medium to long-term facilities for battleship construction. Hanwha is slated to construct the nation’s first indoor factory that can build two surface ships simultaneously. By using two 300-metric-ton cranes built in the factory, the builders can effectively reduce the length of the assembly process.

“The demand is likely to outstrip supply as container ship orders surge and there is a steady demand for LNG carriers and VLACs due to environmental regulations. We expect more revenue from various projects under negotiation in the second half of this year,” said a Hanwha official.

By Park Min-ha (en23mp@heraldcorp.com)