Busan City Launches Nation's First 'LNG Fuel Vessel Demonstration Project'

Support for Localization of Eco-friendly Ship Equipment Materials

[Asia Economy Yeongnam Reporting Headquarters Reporter Yoon Yoseop] Busan City announced on the 29th that it will actively promote the "Multipurpose Offshore Demonstration Platform Construction Project" for the demonstration of liquefied natural gas (LNG) fuel vessels, the first of its kind nationwide. The total project cost is 38.5 billion KRW, and it will be carried out over five years from this year until 2024.

This project aims to promote the localization of eco-friendly shipbuilding equipment by securing usage records, led by the city and the Ministry of Trade, Industry and Energy, in a situation where domestically developed equipment has failed to enter the market due to lack of usage records. The Korea Shipbuilding & Offshore Equipment Research Institute will lead the project, working together with ship equipment companies to carry out the LNG fuel vessel demonstration project.

Busan City plans to secure 3 billion KRW in national funding this year to proceed with the basic design and shipyard bidding for the construction of the demonstration vessel.

Busan accounts for 34% of ship equipment companies nationwide. The LNG equipment demonstration project is expected to accelerate the localization of eco-friendly equipment and strengthen the competitiveness of the shipbuilding and marine industry.

Last year, the three major domestic shipbuilders secured orders for 51 out of 63 large LNG carriers ordered (80%), dominating the global LNG vessel market. This project is expected to contribute to new growth engines for Busan’s ship equipment companies and create local jobs.

Jung Dong-won, Director of the Manufacturing Innovation Infrastructure Division of Busan City, said, “According to recent Statistics Korea surveys, Busan’s shipbuilding and marine industry shows increases in the number of businesses, employees, and added value,” adding, “We will do our best to promptly advance the project to revitalize the local economy through the resurgence of ship equipment companies and the creation of new jobs.”

LNG Fuel Ship Equipment Demonstration Project Ship Demonstration Ship (Draft). (Photo by Busan City)

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