Venture Global, an American liquefied natural gas (LNG) company, is negotiating with HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries to build 4+8 180,000 cubic meter LNG carriers.
The tender is expected to be completed and the contract signed as early as the end of the second quarter. The price of each vessel is expected to be about US$250 million to US$260 million. Based on this calculation, the total value of the 12 vessels is between US$3 billion and US$3.12 billion. The competition for orders from the three Korean shipbuilders is expected to be fierce.
Foreign media reports that Venture Global is not considering Chinese shipyards. The company believes that Chinese shipyards do not have enough capacity to undertake this contract due to the orders from QatarEnergy and domestic shipowners. In addition to this, the U.S. proposed port fee program is another major burden for Venture Global to place orders with Chinese shipbuilders, and the Office of the U.S. Trade Representative (USTR) is proposing to levy millions of dollars in port fees on Chinese vessels calling at U.S. ports.
On April 9, US President Trump signed an executive order announcing that he would restore the US’s maritime advantage and vowed to increase investment in the shipbuilding industry in the coming years, while continuing to push forward plans to impose port fees on Chinese vessels. Against this backdrop, Venture Global is inclined to reach a deal with a Korean shipbuilder.
Among the three Korean shipbuilders, Hanwha Ocean has a closer cooperative relationship with Venture Global. In early 2022, the two parties signed a contract for LNG carriers worth 1 trillion won. Currently, five of Venture Global’s six 174,000 cubic meter LNG carriers and three 200,000 cubic meter LNG carriers are built by Hanwha Ocean. Based on past cooperation experience, Hanwha Ocean is expected to gain an advantage in this bidding.
Founded in 2013, Venture Global is a liquefied natural gas company headquartered in Arlington, Virginia. The company was listed on the New York Stock Exchange in January of this year and is currently developing a total of four LNG projects in Louisiana. The company begins LNG production in 2022 and is expanding its fleet to increase production, having acquired four and chartered two LNG carriers.