With the increasing number of old LPG ships, the new ship order market of LPG ships is getting ready for development. Korean shipbuilders with new technology of dual-fuel LPG ships will also take advantage of this opportunity to expand the order share in the construction market of this type of ships and further seize the market opportunities.
The ORDER structure for LPG ships is changing
According to a source from a South Korean shipbuilder, the number of 20,000-45,000 cubic meter medium-size LPG ships over 15 years old this year has reached 46. Although the number will be reduced slightly to 40 next year, the number is expected to increase year by year over the next three years, reaching 46 in 2022, 62 in 2023 and 77 in 2024.The newly built LPG vessels, which are expected to be completed and delivered within the next three years, are three in 2020, seven in 2021 and 10 in 2022, which cannot meet the demand.
The situation of VLPG vessels (VLGC) above 65,000 cubic meters is similar.The number of VLGC vessels over 15 years of age will increase from 70 in 2020 to 79 in 2021, and is expected to increase to 87 in 2022, 102 in 2023 and 113 in 2024.The newly built VLGC, which is expected to be completed and delivered within the next three years, will be 24 in 2020, 26 in 2021 and 16 in 2022, respectively.
At present, LPG ships still generally use Marine fuel.Hana financial investment corporation researchers PiaoWuXian said: "with the continuous strengthening of the international maritime environmental protection rules, considering that the world's major shipping companies competition revolves around improving the efficiency of ship fuel oil, LPG ship orders of structure are changing, with LPG as the host of clean fuel dual-fuel LPG ship orders will be more and more, is worth looking forward to it.""In the 20,000-45,000 cubic meter medium LPG segment, old LPG carriers are up to 8.8 times more expensive than newly built dual-fuel LPG vessels in terms of total fuel costs over 20 years of operation," he said.
South Korean shipping companies in the forefront of LPG power ship development
South Korean shipbuilders such as Hyundai Heavy Industries And Daewoo Shipbuilding, which have taken the lead, are expected to benefit as the market for LPG and dual-fuel LPG new ships recovers.
Hyundai Weipo Shipbuilding and Hyundai Sanhu Heavy Industries, subsidiaries of hyundai Heavy Industries, took orders for two 38,000 cubic meters and 90,000 cubic meters of dual-fuel VLGC in July and August last year, respectively.Two of the first vessels will be delivered in June and July next year, respectively.It will also be the world's first delivery of newly built medium and large bifuel VLGC.
South Korean shipbuilding industry has been in the forefront of LPG powered ship development in the world.The Hyundai Heavy Industries Group, in partnership with HyundaiGloble Services and the Lloyd's Register of Ships, developed the dual-fuel VLGC, which received the GENERAL Acceptance (AiP) certificate for LR in 2018.In 2014, Daewoo Shipbuilding partnered with South Korean ship engineering company DSEC, Belgian owner Exmar, ship engine manufacturer MAN D&T and DNV GL to conduct the world's first JOINT research project on LPG powered dual-fuel LPG carriers. The LPG powered dual-fuel LPG carriers developed by Daewoo shipbuilding received the DNV GL basic certification.
Hyundai Heavy Industries is converting an 84,000 cubic meter class VLGC delivered in 2015 into a ship with LPG dual-fuel engines, which successfully completed sea trials on November 10 this year.The ship is the world's first LPG-powered dual-fuel VLGC, and can also reduce fuel consumption by 10%, carbon dioxide emissions by 20% and sulphide emissions by 97% at top speed, compared to ships that run exclusively on Marine fuel.
As lPG-powered dual-fuel LPG carriers are refit and operate more, the world's major shipping companies are expected to significantly increase their orders for new lPG-powered medium-size LPG carriers and VLGC vessels.
So far, South Korean shipbuilders have taken orders for 37 dual-fuel LPG vessels, of which Hyundai Heavy Industries has taken 30, accounting for more than 80 percent.In this context, Daewoo Shipbuilding, which had previously focused on the construction of LPG ships, will undertake more dual-fuel LPG carriers, especially dual-fuel VLGC.In the medium to long term, LPG vessels can also be converted to ammonia fuel for propulsion, which is expected to increase the interest of owners.
"In the shipbuilding and maritime industry, it is very important for new ships to achieve first delivery performance," says Mr Park.This is because it will be the technical standard for this new type of ship and will be of concern to owners."
LPG dual-fuel engine was officially produced
Hyundai Weipu Shipbuilding and Hyundai Sanhu Heavy Industries have started construction of 38,000 cubic meter dual-fuel LPG vessel and 90,000 cubic meter dual-fuel VLGC, respectively, hyundai Heavy Industries said recently. To this end, its large engine plant in Ulsan has recently completed assembly lines for LPG dual-fuel Marine engines and started formal mass production.
In October last year, Hyundai Heavy Industries Group's Engine Plant received a 9,700hp LPG dual-fuel Marine engine production order from Hyundai Omi shipbuilding and delivered it to the company on September 14 this year.
"At present, the dual-fuel LPG carrier built by Hyundai Saipo Shipbuilding has been fitted with gas supply equipment for trial operation," said a person with knowledge of hyundai Heavy Industries.The ship is scheduled for delivery in July 2021.
Unlike liquefied natural gas (LNG) powered ships, LPG powered ships can directly supply liquefied LPG as fuel for Marine engines, so no additional gasification equipment is required and can be easily stored.
Korean industry insiders say LPG powered ships are rated as having a high growth potential as they are not only environmentally friendly but also can be easily supplied with fuel from LPG refuelling facilities around the world.
It is reported that with the development of clean energy power technology represented by natural gas, hyundai Heavy Industries Group is vigorously exploring a variety of environmentally friendly ship projects.Hyundai Heavy Industries said: "Following the LNG ship, with the construction of THE LPG ship, we will further expand the natural gas ship business, which is becoming the growth engine of new clean energy technologies."
