In October 2023, China successfully placed five orders out of a total of seven large liquefied natural gas (LNG) carriers globally, while South Korea registered only two orders. This move has challenged South Korea's long-standing position in the high-value shipbuilding market.
Global Orders and Market Share
According to published data, the total global orders from January to October reached 76 vessels, which is more than four times the 17 orders registered in the same period last year. South Korea, with 44 vessels, equivalent to 57.9 percent of total orders, remains at the top, while China, with 32 vessels, accounts for 42.1 percent of the total. In 2025, China received only three orders for LNG carriers, but this year it has registered more than ten times that number of orders.
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Production Growth and New Capacities
China's growth in this area is particularly due to the activities of Hudong-Zhonghua Shipbuilding and Jiangnan Shipyard. On October 16, Hudong-Zhonghua signed a contract with Malaysian shipping company MISC to build five LNG carriers, each with a capacity of 174,000 cubic meters. This shipbuilder had previously received five more orders from this company, bringing its total orders from MISC to 10 vessels. Additionally, it has increased its production capacity through the new Changxingdao shipbuilding facility that began operations last year.
Jiangnan has also successfully secured a series of foreign orders this year. This includes two LNG carriers with a capacity of 175,000 cubic meters from Eastern Pacific Shipping (EPS) based in Singapore, as well as four vessels from ADNOC Logistics & Services, a subsidiary of the state-owned energy company of the United Arab Emirates.
China's status as the largest LNG importer in the world is a significant factor in this growth. China has leveraged its purchasing power to encourage LNG exporters and project operators to place orders with Chinese shipyards. In a recent briefing, HD Korea Shipbuilding & Offshore Engineering identified Hudong-Zhonghua and Jiangnan as key competitors and pointed to lower prices and projects related to Chinese cargo owners as factors driving their orders.
Competition in the Shipbuilding Market
China's advantage in the shipbuilding market is particularly evident on a larger scale. The total global ship orders reached 79.69 million compensated gross tons (CGT) by October, a 61 percent increase compared to the same period last year. China accounted for 61.03 million CGT, equivalent to 76.6 percent of the total, while South Korea recorded 11.91 million CGT, equivalent to 14.9 percent. In the same period last year, China's share was 63.3 percent and South Korea's was 16.4 percent. Thus, the gap between the two countries has increased to 61.7 percent.
LNG carriers require advanced technology to maintain cargo at minus 163 degrees Celsius and also have stringent safety standards. These technical requirements have helped Korean shipbuilders maintain a sustainable competitive advantage. However, China is strengthening its expertise through collaboration with Japanese shipping companies and is increasingly competing in a sector traditionally dominated by Korean shipbuilders. By the end of October, the new price of an LNG carrier reached $245 million, higher than $131.5 million for a very large crude carrier (VLCC) and $240 million for a container ship with a capacity of 22,000 to 24,000 TEU.
The backlog of orders for Korean shipbuilders, equivalent to about three to four years of work, has also created opportunities for Chinese competitors. As Korean shipbuilding docks approach capacity, ship owners seeking earlier delivery times are increasingly turning to Chinese docks. Nevertheless, the backlog of orders for Korea reached 38.56 million CGT by the end of October, an increase of 360,000 CGT from the previous month. Although South Korea's share of the overall ship market has decreased, the volume of work secured by its shipbuilders continues to rise. An industry official noted that the future impact of port costs amid U.S.-China tensions will remain a key variable for the market.
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