South Korea's Hyundai Heavy Industries announced today that it has inked up to three 155,000 cu m LNG carriers for Greek owner George Prokopiou's Dynagas LNG outfit.
The owner became the third Greek shipowner to book new LNG carriers this year after Peter Livanos’ GasLog and John Angelicoussis’ Maran Gas Maritime.
The move is the first of a fresh spate of ordering expected from the Greek-linked liquefied natural gas shipping community with both GasLog and Maran Gas apparently keen to finalise further newbuilding orders in the coming weeks.
Dynagas, having taken its existing three modern, steam turbine powered LNG carriers from HHI in 2007 and 2008, has now ordered two new vessels for H2 2013 delivery from the same builder, plus one option which must be declared by December.
The vessels are 155,000 cu m class and, in common with all the latest orders in the sector are for tri-fuel diesel-electric ships.
Hyundai says the newbuilding price tag is around $200m per ship. The world's largest shipbuilder has inked new orders for 42 ships and offshore plants worth $10.5bn so far this year including Hyundai Samho orders, attaining 53% of its annual order target of $19.8bn.
A source close to the Dynagas LNG newbuilding project said that the ships have been ordered without lining up employment in advance and that they were not linked to the Gazprom Global LNG tender in which the Greece-based owner recently emerged as one of the finalists.
Dynagas has been a champion of a nascent spot market in LNG and is currently operating its vessels under charters of about one year in duration.
Mr Prokopiou’s latest investment in the sector comes against a background of firming LNG carrier rates and optimism for the longer term.
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The Dynagas ships lag four newbuildings of 155,000 cu m that GasLog already has on order from Samsung Heavy Industries for 2013 delivery.
Two further vessels of the same size are likely to be finalised shortly with Samsung again the most likely builder.
But GasLog chief executive Jeppe Jensen would not comment on further expansion.
“I am happy to say that we have confirmed long term solutions for our four newbuildings on order,” he said.
Even though the company has yet to confirm that it is looking to place contracts for two further vessels, market sources are already mentioning either Chevron or Shell as the most probable charterers of the next pair.
Maran Gas, too, stands on the brink of contracting two more carriers from its favoured builder, Daewoo Shipbuilding & Marine Engineering, it has been confirmed.
Those familiar with the project suggest that the order may be finalised within June. Three very large crude carriers that the Angelicoussis Shipping Group had on order at Daewoo were substituted earlier this year for three 156,000 cu m LNG carriers.
The first of the trio is scheduled for delivery in the second half of 2013 with the two sister vessels to follow in 2014 and 2015.
It is understood that the vessels, which — stemming from contract conversions — are costing an estimated $220m apiece, are currently uncovered by charters but Maran may seek to fix at least one within this year.
Assuming the additional two, which are straight LNG contracts, are completed, Maran Gas’ owned LNG fleet is projected to expand to 10 units.