LNG bunkering JV planned for South Korea

Initiated by Korea Gas Corporation, the committee includes Busan Port Corporation, POSCO International, S-Oil, Daewoo Logistics and Hyundai Glovis. They aim to secure stable LNG bunkering demand and strengthen mid- to long-term competitiveness.

Hee-Bong Chae, president of Korea Gas Corporation, said: “The establishment of an LNG bunkering joint venture will not only respond to preemptive response to the recent global tightening of marine environment regulations, but also provide a good opportunity for LNG to become a fuel for ship transportation in Korea, a traditional shipbuilding and shipping powerhouse.”

Through the LNG bunkering JV, Gas Corporation plans to achieve sales of 1.36 million tonnes of LNG for ships and sales of approximately 1 trillion won by 2030, and to reduce 8,315t of sulfur oxides and 2,557t of fine dust.

To this end, it is planning to secure two bunkering ships in the East Sea and the South Sea, one bunkering ship in the West Sea, and one shipping facility for LNG receiving bases in Dangjin to promote the LNG bunkering business for ports across the country.

Meanwhile, the Ministry of Maritime Affairs and Fisheries has strengthened the regulation of sulphur content for ship fuels in the six major ports in the territorial sea and in Korea by revising related laws such as the revision of the Marine Environment Management Act in January 2019 and the enactment of the Port Air Quality Act in April 2020.