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Samsung Heavy Industries Secures Record $3.45 Billion LNG Carrier Order

Deal for 15 LNG Carriers Marks a Significant Achievement Despite Below-Market Pricing
South Korea
s 010140.KO Mid and Small Cap 2000
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Samsung Heavy Industries Co., a leading South Korean shipbuilder, has announced a monumental $3.45 billion order for 15 liquefied natural gas (LNG) carriers from an undisclosed Middle Eastern shipowner. This contract sets a new record for the company, surpassing its previous high of a $3 billion agreement for methanol-powered container ships. Scheduled for delivery by October 2028, these 174,000 cubic meter LNG carriers represent a significant boost to Samsung Heavy Industries’ portfolio, achieving half of its previous year’s order total with this single deal.

Despite the scale of the contract, it’s noteworthy that the agreed price per LNG carrier, at $230 million, falls below the current global market value of approximately $265 million for vessels of similar size and capacity. This pricing strategy raises questions about the competitive pressures within the shipbuilding industry and the dynamics of securing large-scale orders in a highly competitive market. Nonetheless, the deal underscores Samsung Heavy Industries’ continued leadership in the LNG carrier market and its ability to attract major international contracts.

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