Samsung Heavy Industries announced on Aug. 25 that it has won an order for two 98-K-class VLECs, the world's largest, from an Asian shipping company. The order amount is $220 million (262 billion won).
VLEC is a new concept ship designed to export ethane produced by the development of shale gas in the United States overseas. Samsung Heavy Industries won the world's first order to build six VLECs in 2014 and successfully delivered them.
Including the construction deal, Samsung Heavy Industries has won 11 orders (61 percent) out of 18 VLECs worldwide so far, proving its unrivaled quality competitiveness in the sector.
The main ingredients of shale gas are methane, ethane, propane, etc. and are produced at a rate of 90 percent of methane, 5 percent of ethane, and 2 percent of propane.
Ethylene can be manufactured by pyrolysis of ethane, which is expected to be ordered further as petrochemical companies are showing high interest in ethane decomposition facility business due to cheaper raw material costs than conventional methods manufactured by naphtha.
"Additional orders for VLECs are expected to be placed if ethane exporters such as the U.S. and Norway increase production in the future," a Samsung Heavy Industries official said. "We will continue to maintain our superior market position based on our unique technology and building experience."
With the deal, Samsung Heavy Industries has won a total of seven orders worth $700 million this year.
