Shipping: Due South Korea Yards Dominate Lng Newbuild Market

A deep dive into who's who as well as what's what from Reuters, Nov. 20:

FOCUS -South Korean shipbuilders' lock on LNG tanker marketplace pose to concur for years

South Korean shipyards convey boxed out their Japanese rivals from the marketplace pose for edifice large ships carrying liquefied natural gas (LNG), winning all of the orders for the side past times side iii years worth to a greater extent than than $9 billion.

Three South Korean yards - Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries as well as Samsung Heavy Industries - convey won the to a greater extent than than l orders placed for novel large-scale LNG tankers for delivery inwards the side past times side iii years, according to information from the companies as well as 2 tanker brokers.

The bulging orderbook illustrates the authorisation the South Korean yards convey achieved over their competitors, particularly inwards Japan. It is likewise sign of how the companies convey rebounded from a sector-wide slump entirely 2 years agone as well as how they are positioned to ascendency the sector inwards the future.

“The demand for LNG carriers surged followed past times increased global demand of LNG,” said Park Hyung-gun, vice president of DSME. “There is a brilliant outlook ahead for LNG demand as well as South Korean shipbuilders volition endure able to excel inwards the LNG market.”

Including floating LNG storage as well as back upward vessels, send brokerage Braemar estimates South Korean yards convey bagged 78 per centum of all LNG-related orders this year, amongst only fourteen per centum as well as viii per centum going to Nippon as well as China, respectively.

H5N1 ready of information collected past times some other send broker, who did non desire to endure identified, showed all of this year’s orders for large LNG tankers went to South Korea, at a combined value of over $9 billion.

The novel ships volition increment the global LNG fleet past times to a greater extent than or less 10 percent. Dominating this segment is commutation for shipyards, equally gas consumption outgrows that of other fuels such equally crude or coal.

The South Korean shipbuilders convey outperformed their Japanese competitors this twelvemonth amongst the equities for all iii Korean firms rise spell the Japanese builders are either apartment or down....MUCH MORE 

One of the charts accompanying the story:
Shipbuilder stock toll performance