As global markets extend trading hours, South Korea tests the case in Asia

South Korea is intensifying its efforts to widen the technology gap with China in liquefied natural gas (LNG) carriers, according to a recent report. The industry highlights that HD Hyundai Samho, a subsidiary of HD Hyundai, is currently constructing a 177,000-cubic-meter LNG carrier at the Yeongam shipyard in South Jeolla, featuring three cargo tanks.

This vessel is notable as it boasts a 3,000-cubic-meter increase in loading capacity compared to a standard LNG carrier with four tanks. HD Hyundai Samho's design optimizes space by reducing non-cargo structures and equipment between tanks, resulting in up to a 55% expansion in the length of each cargo tank. This innovative approach addresses the challenge of "sloshing," which occurs when LNG moves within a single tank, potentially damaging the cargo tank system.

By eliminating one cargo tank, the vessel not only boosts transport efficiency but also reduces construction costs, potentially offsetting Korean shipbuilders' price disadvantages against Chinese competitors. The Korea Maritime and Ocean University's professor Ryu Min-cheol notes that building three cargo tanks may pose higher pressures, but HD Hyundai has reportedly developed a safe construction method.

The ship's smaller surface area due to fewer tanks could further reduce material costs, benefiting Korean shipyards. The South Korean government has identified localizing LNG cargo tanks as a key project to enhance shipbuilding profitability by cutting expenses related to royalties paid to French technology provider GTT.