Asia's First Transport and Bunkering 'Jeju LNG 2'... Catalyst for Eco-Friendly Ship Industry

7500㎥ LNG Tank Capacity... Domestic Technology Applied to Cargo Hold
'Blue Ocean' Eco-Friendly Ship Infrastructure... Expected Boost for Shipbuilding and Marine Industry

[Asia Economy Reporter Kim Bo-kyung] The naming ceremony for 'Jeju LNG No. 2,' Asia's first liquefied natural gas (LNG) carrier and fuel supply (bunkering) dual-purpose vessel, was held on the 10th at Samsung Heavy Industries in Geoje, Gyeongnam. Expectations are rising about whether this can inject new vitality into the shipbuilding and shipping industries through the establishment of eco-friendly ship infrastructure.

Jeju LNG No. 2 is a vessel equipped with a 7,500㎥ LNG tank capacity that performs both LNG transportation and bunkering between Tongyeong and Jeju. It is the first LNG bunkering and transportation dual-purpose ship in Asia and Korea. Since it can load and unload cargo while simultaneously supplying fuel, it reduces time and spatial constraints compared to the traditional method of fuel injection using tank lorries. This vessel applies the 'KC-1,' a Korean-style LNG cargo tank design technology developed purely with domestic technology through cooperation between Korea Gas Corporation and the three major shipbuilders.

A ship naming ceremony is an event held after ship construction, where the shipbuilder invites cargo owners and shipowners to name the vessel and pray for safe navigation. About 100 stakeholders attended the event, including Yoo Jung-yeol, Director of Industrial Policy at the Ministry of Trade, Industry and Energy; Chae Hee-bong, President of Korea Gas Corporation, the cargo owner; Kim Chil-bong, Vice Chairman of Korea Shipping Corporation, the shipowner; and Nam Joon-woo, President of Samsung Heavy Industries, the shipbuilder.

Recently, the global shipbuilding and marine market has seen a significant increase in eco-friendly vessels such as LNG-powered ships due to strengthened environmental regulations by the International Maritime Organization (IMO). The number of LNG-powered ships worldwide reached 68 in 2014, 186 in 2016, and 270 in 2018. As the paradigm of the shipbuilding and marine market rapidly changes, related infrastructure industries such as LNG bunkering are emerging as blue oceans. However, the lack of domestic LNG bunkering infrastructure has been an obstacle for shipowners in choosing LNG-powered ships. The so-called "chicken or egg" dilemma has persisted, where LNG fuel suppliers hesitate to invest in infrastructure due to insufficient demand, and shipowners hesitate to order LNG-powered ships due to the lack of bunkering infrastructure.

In response, the Ministry of Trade, Industry and Energy decided to support the construction of dedicated LNG bunkering vessels to expand the supply of LNG-powered ships and secure the competitiveness of the bunkering industry. From this year until 2022, a total project cost of 49.8 billion KRW (15 billion KRW in government funds and 34.8 billion KRW in private investment) will be invested to support the construction of one additional dedicated LNG bunkering vessel.

With the full operation of Jeju LNG No. 2 starting this year and the new LNG bunkering vessels ordered with government support (each supplying 370,000 tons annually) beginning operation in the second half of 2022, it is expected that the initial LNG bunkering demand can be met by 2025. According to the Korea Energy Economics Institute, annual domestic LNG bunkering demand is projected to expand from 700,000 tons in 2025 to 1.36 million tons in 2030.

An official from the Ministry of Trade, Industry and Energy stated, "We will promote the entry of overseas LNG-powered ships into Korea by establishing LNG bunkering infrastructure ahead of neighboring countries," adding, "We will continue efforts to enable Korea to leap forward as a Northeast Asian LNG bunkering hub through investment in LNG bunkering infrastructure."

This content was produced with the assistance of AI translation services.