The global liquefied natural gas (LNG) carrier market is witnessing a shift as South Korea's dominance is being challenged. China, leveraging its technological advancements, is expanding its orders for ultra-large LNG carriers and increasing its influence in the high-value ship segment.
According to the shipbuilding industry, Chinese shipbuilders are rapidly accumulating experience in LNG carrier construction, enhancing their presence in the high-value ship market.
Last month, China’s state-owned Hudong-Zhonghua secured orders for the world’s largest 271,000 cubic meter QC-Max LNG carriers. Other shipyards, such as Jiangnan and Dalian Shipbuilding Industry Company (DSIC), are also establishing large LNG shipbuilding systems to target the high-value ship market. Once focused primarily on bulk carriers and container ships, China is now proving its technological capabilities by accumulating LNG shipbuilding achievements.
China's progress is evident in its order statistics. According to overseas shipbuilding industry data, South Korea recorded 115 new LNG ship orders (67.5%) in 2022, while China secured 56 orders (32.5%). However, in 2024, South Korea is projected to have 48 orders (57.2%) compared to China’s 28 orders (42.8%), significantly narrowing the gap between the two countries. While South Korea maintains a technological edge, industry consensus indicates that China's growth rate is surpassing market expectations.
LNG carriers are high-value vessels designed to transport liquefied natural gas at minus 163 degrees Celsius. They require advanced cargo tank technology, insulation systems, and long-term operational reliability, creating high entry barriers.
In response, South Korea's three major shipbuilders—HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries—have steadily accumulated LNG shipbuilding experience since the 2000s, advancing their technology. As a result, they have maintained a unique competitive advantage in the LNG ship market, earning the trust of global shipowners.
However, recent developments show that Chinese shipyards are quickly narrowing the technological gap in LNG shipbuilding. In fact, the number of Chinese shipyards capable of designing and constructing LNG carriers has increased from one, Hudong-Zhonghua, to five.
According to China’s state-run CCTV, China's share of the global LNG carrier market has surpassed 30%. Notably, Hudong-Zhonghua has secured orders for approximately 60 LNG carriers, ranking first in the world in terms of total cargo capacity, with a backlog of orders secured until 2031.
Industry experts warn that if this trend continues, the profitability of South Korea's shipbuilding industry could be affected. If China intensifies price competition based on its technological capabilities, South Korea may struggle in volume competition, leading to downward pressure on global LNG ship prices.
One industry insider stated, "In the past, there was a perception that China could not catch up with South Korea in LNG ships, but the atmosphere has changed. South Korea must not rest on its current advantages but should maintain its technological lead through next-generation eco-friendly ships and productivity innovations."
* This article has been translated by AI.
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