Hanwha Ocean has announced two orders totalling Won1.3tn ($866.4m) for two liquefied natural gas (LNG) carriers and three very large crude carriers (VLCCs).

The company stated that the LNG carriers are intended for an undisclosed client in Africa, with delivery expected by May 2029.

Additionally, the three VLCCs will be supplied to a shipping company in Oceania by June 2029.

The orders come as the freight rates for VLCCs have seen a resurgence following the blockade of the Strait of Hormuz, a situation resulting from recent US military actions against Iran.

This geopolitical tension has prompted shipowners to expedite investment decisions.

Additionally, demand for LNG carriers is projected to increase in the medium to long term, driven by planned LNG terminal developments set to commence post-2028, particularly in the US.

Aligning with these industry trends, Hanwha Ocean intends to persist with its strategy of selective ordering, concentrating on large high-value vessels while remaining adaptable to market fluctuations, reported BusinessKorea.

The company has thus far secured orders this year for 11 vessels this year, comprising six VLCCs, four LNG carriers and one wind turbine installation vessel, with an aggregate value of approximately Won3.46tn.

Increasing tensions in the Middle East are pushing more shippers to place advance orders for VLCCs due to rising shipping costs.

Meanwhile, Hanwha Ocean anticipates that demand for LNG carriers will escalate, with various LNG terminal projects anticipated in the US and other regions.

Earlier this month, the company secured a module fabrication contract for the Leviathan Expansion Project from Chevron Mediterranean, a subsidiary of Chevron. The project, situated offshore Israel, aims to develop additional modules to boost production at the Leviathan platform in the Mediterranean Sea.

Hanwha Ocean has been involved in the expansion project since the third quarter of 2024, offering constructability insights.

"Hanwha Ocean secures orders worth $866m for five vessels" was originally created and published by Offshore Technology, a GlobalData owned brand.

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