Samsung Heavy "Gas Corporation, Unfair Delay in Domestic Cargo Hold LNG Ship Loading Test"

[Asia Economy Reporter Oh Hyung-gil] Korea Gas Corporation's sudden refusal to conduct LNG loading tests on LNG carriers equipped with the Korean-style cargo tank (KC-1) is raising concerns about additional losses for related companies.

Samsung Heavy Industries announced on the 30th that the LNG carriers SK Serenity and SK Spica, which are Korean-flagged vessels for LNG transport, were scheduled to load LNG at the Samcheok LNG terminal starting from the 23rd of last month and conduct LNG loading tests offshore in the East Sea. However, the Gas Corporation suddenly refused entry and notified a postponement, preventing the tests from taking place.

This vessel's LNG loading test conditions and procedures were prepared with the participation of the Gas Corporation, the developer of KC-1; KC LNG Tech (a Gas Corporation subsidiary), the cargo tank technology company; SK Shipping, the shipowner; Samsung Heavy Industries, the shipbuilder; and classification societies from Korea and the United States.

The Gas Corporation sent an official letter on the 16th, just one week before the scheduled loading, refusing entry to the LNG terminal and unilaterally notifying a postponement, citing incomplete documents such as "repair results of cold spot areas found during the 3rd loading test" and "analysis data on the possibility of cold spot occurrence and countermeasures during loading tests."

However, the cold spot areas found in the 3rd test had already been submitted, and the repair methods and procedures are matters being prepared by the technical experts, the Gas Corporation and KC LNG Tech. The repair results had already been submitted to the classification societies and shared with the related companies, they countered.

In particular, regarding the possibility of cold spot occurrence during the loading test, it was confirmed to be in a safer state than the allowable range according to classification society regulations, and technical countermeasures for cold spot occurrence during the loading test were also prepared through consultations with related companies. Having obtained the operation certificate from the classification societies and secured safety, they argued that this could not be a reason to refuse LNG loading.

SK Serenity

Accordingly, Samsung Heavy Industries confirmed that the contents mentioned in the Gas Corporation's letter had already been delivered and sent an official letter on the 24th urging measures to promptly proceed with the LNG loading test.

As the LNG carriers equipped with KC-1 have been undergoing repairs for years due to quality issues, SK Shipping has incurred billions of won in non-operation losses, and Samsung Heavy Industries has faced cargo tank repair costs, continuously increasing the burden on private companies.

Moreover, if the LNG loading test delay causes the resumption of operations to be postponed by several months, related companies will inevitably face additional massive losses.

A Samsung Heavy Industries official said, "We judge the quality issues of KC-1 to be design defects by the developer and designer, but as the shipbuilder, we have done our best in repairs for prompt normalization. Delaying LNG loading just before the resumption of tests requested by the shipowner and classification societies means that the Gas Corporation itself is admitting design defects in KC-1."

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