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Biz News Korea(Eng)

Korean shipbuilders hope for year-end orders from Russia

Collected: 2016.12.06

Distributed: 2016.12.08

Source: Go Direct

South Korea’s shipbuilders hungry for new orders have their fingers crossed for a Christmas or New Year’s gift from Russian state-owned liner.

According to TradeWinds, leading shipping news service and other industry sources, Sovcomflot is ready to award an order for a fleet of oil tankers to a Korean shipyard and also is weighing a Korean builder for an ambitious fleet of costly natural gas carriers.

Russian shipper’s chief executive Sergey Frank recently headed a delegation to Samsung Heavy Industries for the naming of the ice-class Arc7 42,000-dwt tanker newbuilding Shturman Ovtsyn.

During the visit, the Russian team discussed $200 million orders for four Aframax tankers with Korean shipbuilders. The deal would likely go to either Hyundai Heavy Industries or Samsung Heavy Industries. The contract will likely be possible by early next year.

Samsung Heavy Industries is also said to be the favorite candidate among local shipbuilders to join the Russia’s “Yamal LNG Project” as a part of ambitious Russian Arctic development.

The project requires 15 ice-breaking LNG carriers which are being built by Daewoo Shipbuilding & Marine Engineering Co. But in the winter period when travel across the Arctic is impossible, Russia needs general LNG liners to deliver produces from Yamal to Europe and Asia.

The Russian shipper is expected to make orders for four LNG carriers for the Europe-Asia route within the month. Samsung Heavy Industries and Japanese and Chinese rivals are vying for the order.

By Park Yong-beom

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