Norwegian state-owned energy company Equinor is selecting contractors for a liquefied natural gas (LNG) carrier project valued at approximately $1 billion. Currently, one Chinese shipyard and two South Korean shipyards have been shortlisted as candidates, with all parties competing for the order.
According to TradeWinds, Equinor is proceeding with the tender process for the construction of 2+2 new 174,000-cubic-meter LNG carriers. Each vessel is valued at approximately $250 million, with the total contract worth up to around $1 billion including options. Considering shipyard berth availability, delivery of the newbuilds is expected in 2028.
To initiate the formal bidding process, the company has issued a Request for Proposal (RFP) to the shipowner for an order of 2+2 vessels. This order is not being placed directly by Equinor, but rather through a process of “new ship construction slots are reserved first, followed by the designation of operating shipowners.”
Reports indicate that as long-term charter agreements for Equinor’s aging vessels approach expiration, the company has been evaluating the possibility of placing newbuild orders with Chinese and South Korean shipyards. This initiative aims to replace outdated fleet capacity and support its expanding LNG business portfolio.
Since the beginning of this year, South Korea has taken delivery of several LNG carriers. Two additional LNG carriers contracted by Hanwha Philly Shipyard will be constructed in collaboration with the South Korean shipbuilder Hanwha Ocean.
If a Chinese shipyard can win the battle for this order, it will be the first LNG carrier shipbuilding contract won by a Chinese shipyard this year.