[Tech Report] Samsung Heavy Industries Joins 'Offshore LNG Refueling Station' Project

Samsung Heavy Industries is the first among the three major shipbuilders to promote a bunkering business that supplies LNG, the fuel for liquefied natural gas (LNG) carriers. LNG bunkering is attracting attention as an essential business supporting the carbon neutrality trend in the shipping and port sectors.

According to Samsung Heavy Industries on the 21st, the company plans to approve an amendment to its articles of incorporation at the shareholders' meeting scheduled for the 21st of next month, adding ship fuel supply business and natural gas business for ships to its business objectives. All facilities for the LNG bunkering business are in place, and procedures to obtain government approval are underway.

Busan Port Authority (BPA) successfully completed the first LNG bunkering using the ship-to-ship (STS) method at Gammam Pier in North Port on the 14th. The photo shows the LNG bunkering supply operation (Photo by Busan Port Authority).

원본보기 아이콘

Samsung Heavy Industries has focused on the LNG bunkering business because the volume of LNG carrier construction has recently increased. As the order backlog has surged to as many as 90 vessels, the need to self-supply fuel required for sea trials near the shipyard has grown.

Currently, to conduct sea trials of newly built LNG carriers, LNG must be transported from land using tank lorries and injected into the ship, or the carrier must be sent to the Korea Gas Corporation terminal to receive supply. However, with the increase in construction volume, the cost of land transportation by tank lorries is considerable, and the gas corporation terminals are located in Tongyeong or Gwangyang, about 15 km in a straight line from the Geoje shipyard, resulting in significant travel time.

It typically takes two days just to move from the shipyard to the terminal. In particular, the Tongyeong terminal has only one berth each for 75,000-ton and 127,000-ton vessels, raising concerns that fuel supply may not proceed smoothly.

LNG bunkering is a method where a marine refueling vessel directly supplies fuel. It strongly aims to resolve bottlenecks between construction and sea trials.

The technological barrier for LNG bunkering is somewhat high. Unlike bunker C oil, which was used as conventional ship fuel, fuel supply must be maintained at an ultra-low temperature (minus 163 degrees Celsius). Therefore, suitable facilities, equipment, and operational systems are required.

Among the three major shipbuilders, Samsung Heavy Industries is the first to enter this field, but port operators, shipping companies, and gas suppliers have already jumped into the LNG bunkering business. On the 14th, Busan Port Authority (BPA) successfully conducted the first LNG bunkering in Busan Port using the ship-to-ship (STS) method.

SK Gas, domestic shipping company H Line Shipping, and Ulsan Port Authority (UPA) are also focusing on the LNG bunkering business. They are jointly working to establish a cooperative system covering the entire cycle from LNG introduction for ships to the operation of dedicated bunkering vessels. Their goal is to establish a joint venture (JV) in the first half of this year. According to the Korea LNG Bunkering Association, domestic LNG bunkering demand is expected to grow more than fourfold from 1.7 million tons in 2021 to 7.4 million tons in 2026.

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.