Korean Media: China Has Already Surpassed South Korea Even in LNG Carriers!
On September 18, the Korean media outlet *Herald Economic* published an article stating that South Korea’s shipbuilding industry is facing intensified competition from China in the LNG carrier market. LNG carriers are emblematic of high-value-added vessels. Some analysts suggest that South Korea’s long-standing dominance in this segment may now be under threat. Chinese shipyards, previously relying on cost competitiveness, have now accumulated substantial experience in construction and delivery, and are expanding their operations into building ultra-large vessels.
As of early July, Chinese shipyards had secured 34 orders for LNG carriers this year—surpassing South Korea’s 32 orders.
Notably, Chinese shipbuilders have leveraged timely delivery of previously contracted LNG carriers to secure follow-up orders. After completing all six 175,000-cubic-meter LNG carriers ordered by a shipping services company under Abu Dhabi National Oil Company, Jiangnan Shipbuilding secured four additional orders of the same type in July. This underscores how past construction performance can directly translate into repeat business.
The trend toward larger vessels is accelerating. In June, Hudong-Zhonghua Shipbuilding began construction on the world’s largest LNG carrier, with a capacity of 271,000 cubic meters. Against this backdrop, growing attention is being paid to China’s rising competitiveness not only in standard LNG carriers but also in ultra-large, high-specification vessels.
However, industry observers caution that comparing competitiveness solely by order volume is insufficient. Given that LNG carriers must transport liquefied natural gas at temperatures as low as minus 163 degrees Celsius, advanced engineering capabilities are essential—such as cargo tank technologies capable of maintaining structural stability in extreme cold, superior insulation performance, extensive sea trial experience, and proven long-term operational reliability. For this reason, mere scale or pricing advantage cannot guarantee market leadership.
South Korean shipbuilders continue to hold a competitive edge through decades of accumulated expertise in various liquefied natural gas projects, including technical capability, design flexibility tailored to specific operating conditions and client specifications, extensive experience managing large-scale projects, consistent on-time delivery records, and robust quality management systems.
The challenge lies in China’s ability to stand out not just on price, but increasingly through a sustained record of successful construction and delivery. As the operational history of previously delivered vessels grows, uncertainty surrounding Chinese shipyards diminishes in the eyes of shipowners. Consequently, the expansion of China’s production capacity is seen as a potential catalyst for future order growth.
Original source: toutiao.com/article/1876669808061452/
Disclaimer: The views expressed in this article are those of the author alone.