SHI confirms maiden LNG-fuelled VLCC order

Samsung Heavy Industry’s first LNG-fuelled VLCCs will be equipped with SHI’s S-Fugas fuel supply system. The first vessel to be equipped with the S-Fugas system was AET’s Aframax, Eagle Brasilia (pictured).

Samsung Heavy Industries has won its first contract for a liquefied natural gas-fuelled VLCC, the company confirmed in a stock market filing on Tuesday.

The contract covers the construction of two VLCCs for an unspecified Bermuda-based ship owner, with delivery in April 2022. The contract was worth US$209 million.

The vessels will be fitted with SHI’s proprietary LNG fuel supply system, S-Fugas, along with an energy-efficient propeller system. The first ship to feature SHI’s S-Fugas system was AET’s Aframax, Eagle Brasilia.

The new VLCCs will also be equipped with SHI’s smart ship solution SVESSEL.

The shipyard’s first LNG-fuelled VLCC newbuildings will strengthen its position in a fast-growing segment of the “eco-friendly” ship market, the shipyard commented.

“We see increasing demand for LNG-fuelled VLCCs on top of that for S-max and A-max tankers powered by LNG. SHI aims to take more opportunities to come as we have established a leading position in the market through technological development,” an SHI official commented.

SHI’s first order for an LNG-fuelled VLCC follows after Cosco Shipping Energy Transportation announced an agreement with Dalian Shipbuilding to convert a VLCC order to LNG-fuel in December 2019.

SHI has developed a leading position in the LNG-fuelled tanker segment, which has attracted the majority of LNG-fuelled orders. Overall, SHI has won 54 percent (21) of 41 LNG-fuelled oil tankers ordered and delivered.