Gas Gong-KIAT, LNG Bunkering Shipbuilding Support Project Agreement

Perspective view of a liquefied natural gas (LNG) bunkering vessel. (Photo by Korea Gas Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Gas Corporation announced on the 11th that it signed a "Liquefied Natural Gas (LNG) Bunkering Ship Construction Support Project Agreement" with the Korea Institute for Advancement of Technology (KIAT) on the 10th.

Earlier in September, Korea Gas Corporation formed a consortium with four organizations including Busan Port Authority, POSCO International, S-Oil, and Daewoo Logistics, and was selected as the project executing agency for this project led by the Ministry of Trade, Industry and Energy.

This project is a government priority initiative that provides 15 billion KRW in national subsidies to support the construction of the country's first LNG bunkering dedicated vessel. By resolving economic issues caused by the initial lack of bunkering demand, it will play a key role in revitalizing the domestic LNG bunkering and shipbuilding industries.

The project scale is a total of 49.8 billion KRW (15 billion KRW from the government and 34.8 billion KRW from private investment). By 2022, it plans to support the construction of one LNG bunkering dedicated vessel with a cargo tank capacity of over 7,500㎥. This vessel will supply LNG to ports nationwide using Korea Gas Corporation's Tongyeong base facilities.

A Korea Gas Corporation official said, "Once the LNG bunkering dedicated vessel is fully introduced from 2022, it is expected to have a significant ripple effect on related domestic industries."

Currently, the "SM JEJU LNG 2," Asia's first LNG bunkering combined vessel, is in operation domestically. Four large LNG-powered vessels (iron ore carriers) are also under construction.

With the additional acquisition of LNG bunkering dedicated vessels through this project, concerns about unstable fuel supply will be resolved, and expansion of LNG-powered vessel construction is also expected in the future.

A Korea Gas Corporation official stated, "This year, we plan to establish an LNG bunkering subsidiary and focus on full-scale business promotion with the goal of supplying 1.36 million tons of LNG bunkering to ports nationwide by 2030, achieving sales of 1 trillion KRW, and reducing fine dust by 10,000 tons."

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