Korea Dominates global LNG carrier Orders as china Falls Behind in Key Technology
SEOUL, Oct. 4, 2025 - South Korean shipyards are securing a sweeping majority of global orders for Liquefied Natural Gas Carriers (LNGCs), a complex vessel type requiring specialized cryogenic technology, while China struggles to compete in this high-value sector. The dominance underscores ongoing challenges related to trust and technological expertise in the global market, particularly concerning the transport of ultra-cold cargo at -163 degrees Celsius.
LNGC construction demands complex cryogenic cargo holds, advanced propulsion systems, and adherence to stringent environmental regulations – hurdles proving challenging for Chinese shipbuilders to overcome. This technological gap allows Korea to maintain a lead in the lucrative LNGC market, despite China’s increasing presence in other vessel types. The situation is particularly noteworthy as the United States prepares to significantly expand its LNG export capacity, potentially driving further demand for these specialized carriers.
While China is gaining ground in constructing LNG bunkering ships and dual-fuel container vessels - representing a lower degree of construction difficulty – Korea continues to excel in the more complex LNGC sector. Denmark’s Maersk has commissioned China to build 14 of its 20 dual-fuel container ships (ranging from 9,000 to 17,000 TEU), and France’s CMA CGM is in discussions wiht Dalian Shipyard (DSIC) for up to 10 dual-fuel container ships (22,000 TEU). These dual-fuel container ships are typically priced around 200 billion won per vessel, significantly less than the 350 billion+ won cost of an LNGC.
The anticipated doubling of U.S. LNG export capacity by 2028, as predicted by the U.S. Energy Information management (EIA), is expected to fuel continued demand for LNGCs. Despite technological advancements in China, an industry insider stated, “Korea will be able to maintain its lead in high value-added markets such as large-scale LNGC for several more years.”