Korea’s LNG Carrier Edge Faces China’s Rise
China’s liquefied natural gas (LNG) carrier order volume, which experienced a decline last year, is now on the rise again. Large private Chinese shipyards are gearing up to place orders for LNG carriers, intensifying competition in the market. While there is still a noticeable technological gap between China and Korea, there are calls for Korea to enhance its competitiveness in next-generation vessels to stay ahead of China’s advancements.
Global LNG Carrier Order Trends
According to Clarkson Research, a British agency specializing in shipbuilding and shipping market analysis, the global LNG carrier order volume from January to September this year reached 66 vessels. Korea secured the majority share with 40 vessels, accounting for 61.2% of the total, while China held a 38.8% market share with 26 vessels. Despite China’s market share dropping from 42.8% in 2024 to 8.1% last year, there has been a noticeable rebound in 2025.
China’s Increasing Focus on LNG Carriers
Analysts predict that China’s push in the LNG carrier sector will only intensify. Hengli Heavy Industry, known for its substantial order backlog, is preparing to enter the LNG carrier market. With the addition of new shipyards capable of constructing large LNG carriers, China’s presence in the industry is expected to expand significantly.
Challenges and Opportunities for the Industry
While Chinese shipbuilders are making strides in the shipbuilding sector, replacing Korean shipbuilders in the LNG carrier market remains a challenge. The construction of LNG carriers demands high levels of technological expertise due to the nature of transporting cryogenic cargo. Despite China’s rapid production capacity growth and construction experience accumulation, the trust and reputation earned by Korean shipbuilders over time pose significant barriers for Chinese competitors.
The industry recognizes the need to maintain a technological edge not only in LNG carriers but also in next-generation vessels like liquefied carbon dioxide carriers and ammonia carriers. It is crucial to focus on developing construction technology, eco-friendly fuels, and core equipment to stay competitive in the evolving maritime landscape.
In conclusion, while China is making significant strides in the LNG carrier market, the industry emphasizes the importance of continuous innovation and technological advancement to stay ahead in the highly competitive global shipbuilding industry.
