Gas Gong, Accelerates Eco-Friendly New Business with 'LNG Bunkering' Investment

Promoting Eco-Friendly Fuel Transition Through Establishment of Subsidiary LNG Bunkering

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Gas Corporation is actively promoting the 'Liquefied Natural Gas (LNG) Bunkering' business as part of an eco-friendly new business based on the expertise accumulated over the past 37 years in the natural gas sector.

According to Gas Corporation on the 6th, it established its subsidiary Korea LNG Bunkering in December last year and is now fully launching the LNG bunkering business. LNG bunkering refers to supplying LNG, an eco-friendly fuel, to ships using diesel fuel, similar to refueling cars at gas stations. Compared to conventional ship fuels, LNG can reduce sulfur oxides (SOx) and particulate emissions by 100%, nitrogen oxides (NOx) emissions by 15-80%, carbon dioxide (CO2) emissions by 20%, and fine dust by up to 99%, making it recognized as an eco-friendly fuel.

Global demand for LNG bunkering is expected to reach 20 to 30 million tons by 2030. It is also anticipated to account for 20-30% of the total ship fuel market.

To carry out the LNG bunkering business, securing LNG storage facilities, bunkering vessels, and loading facilities to load LNG onto bunkering vessels is essential.

Korea LNG Bunkering currently provides bunkering services. It plans to lease and use the world's largest natural gas facilities of its parent company, Gas Corporation, including four exclusive LNG loading facilities at the Tongyeong LNG base, the only one in Korea, and the national LNG No. 29 vessel SM JEJU LNG 2. Notably, SM JEJU LNG 2 is Asia's first 'LNG bunkering dual-purpose vessel' equipped with ship-to-ship LNG supply facilities for ship fuel. In February, it placed a new order for the bunkering-only vessel Dongnam No. 2, which is scheduled to operate from early 2023. As a subsidiary that can proactively lead natural gas import, storage, shipment, and supply, it is also promoting consultations for future public-private cooperation.

Korea LNG Bunkering plans to sell 1.36 million tons of LNG for ships and achieve sales of about 1 trillion won by 2030, reducing sulfur oxides by 8,315 tons and fine dust by 2,557 tons. To this end, it will secure two bunkering vessels for the East Sea and South Sea, one bunkering vessel for the West Sea, and one set of loading facilities at the Dangjin LNG receiving base to promote the LNG bunkering business targeting ports nationwide.

A Gas Corporation official said, "Gas Corporation will contribute to the early activation of the bunkering industry through leading investments in the LNG bunkering sector," adding, "We plan to expand various eco-friendly fuel transition businesses to lead Korea's low-carbon eco-friendly energy era."

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