Global LNG Expansion Revives Demand for Carriers, With South Korea at the Center (Photo provided by HD Korea Shipbuilding & Offshore Engineering)
SEOUL, Oct. 2 (Korea Bizwire) — A flurry of new liquefied natural gas (LNG) projects worldwide is fueling expectations of a rebound in orders for LNG carriers, a sector where South Korean shipbuilders hold a commanding lead. Yet analysts warn that years of heavy contracting may leave the market vulnerable to another downturn.
According to industry journal TradeWinds, Australia’s Woodside Energy is in talks with shipyards to order 16 to 20 LNG carriers, while U.S. energy company Sempra has reached a final investment decision on a $14 billion LNG project expected to generate demand for 20 vessels. GasLog, a global shipowner, is reportedly negotiating a $245 million construction deal with Hanwha Ocean.
The renewed momentum marks a stark shift from the first half of 2025, when global ship orders slumped 54.5 percent year-on-year and LNG carrier orders plunged nearly 83 percent. South Korean shipyards, which dominate the high-value segment, saw their LNG orders fall nearly 78 percent during that period.
LNG Carrier (Photo provided by Samsung Heavy Industries)
Executives at Hanwha Ocean and Samsung Heavy Industries have forecast a recovery in new orders as U.S. export terminals come online in late 2025 and the Biden administration resumes export approvals for non-FTA countries, raising expectations of stronger freight rates and tight vessel supply.
Still, experts caution that the latest wave of optimism could prove fleeting. “Even if large-scale plans are announced, it’s uncertain how many ships will actually be ordered,” said Yang Jong-seo, a senior researcher at the Korea Eximbank’s research institute. “The LNG carrier boom that has lasted since 2018 could follow the familiar cycle of over-ordering followed by a prolonged slump.”
The University College London Energy Institute has similarly warned that the LNG carrier market could face oversupply within the next decade, underscoring the fragility of the sector’s apparent recovery.
Ashley Song (ashley@koreabizwire.com)
