Hyundai Heavy Industries Co. (HHI) is close to finalizing a deal to build two liquefied natural gas (LNG) carriers for SK Shipping Co. to transport LNG supplies from U.S. shale gas field.
According to the shipping industry Monday, SK Shipping purportedly will assign HHI to build two LNG ships for its affiliate, SK E&S Co. to transport shale gas from the United States. The order for two container ships would come at a time when local shipyards have become idle due to scarcity in new orders. Ship orders amounted to $234 million in the first four months this year, down 78.2 percent from the same period a year ago.
SK Shipping in December chose HHI as its preferred builder for membrane-class tank ships each with cargo capacity of 180,000 cubic square meters. A membrane tank ship normally costs over $200 million. During talks so far, SK indicated that it could order another ship on top of the first two carriers depending on market conditions.
The LNG ships would run on natural gas and be delivered from the first half of 2019. They would carry SK E&S output from its venture in the third train of Freeport LNG facility on Quintana Island, Texas.