Gas Gong, Busan Port Gong and 3 Other Companies Establish LNG Bunkering Joint Venture

Korea Gas Corporation announced on the 14th that it held a "Liquefied Natural Gas (LNG) Bunkering Joint Venture Establishment Promotion Committee Agreement Signing Ceremony" with Busan Port Authority and others at a hotel in Seoul. (Photo by Korea Gas Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Gas Corporation announced on the 14th that it will establish a liquefied natural gas (LNG) bunkering joint venture company in October with five companies including Busan Port Authority.

On the same day, the corporation held a 'LNG Bunkering Joint Venture Establishment Promotion Committee Agreement Signing Ceremony' with Busan Port Authority and others at a hotel in Seoul. An LNG bunkering vessel is a ship that supplies LNG at sea.

Attending the agreement ceremony were Chae Hee-bong, President of Korea Gas Corporation; Nam Ki-chan, President of Busan Port Authority; Ju Si-bo, CEO of POSCO International; Ryu Yeol, President of S-Oil; Yang Seok-hoon, CEO of Daewoo Logistics; and Lee Sung-chul, Executive Director of Hyundai Glovis.

The corporation has been promoting the establishment of an LNG bunkering joint venture company with strategic shareholders since last year.

Through the agreement, leading companies in the domestic natural gas, shipper, refining, port, and logistics sectors have agreed to secure stable LNG bunkering demand and strengthen mid- to long-term competitiveness.

Through the company, they aim to achieve sales of 1.36 million tons of LNG for ships and approximately 1 trillion won in revenue by 2030, while reducing 8,315 tons of sulfur oxides and 2,557 tons of fine dust.

To this end, they 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 terminal to promote LNG bunkering business targeting ports nationwide.

President Chae said, "The establishment of the joint venture company is not only a proactive response to the increasingly stringent marine environmental regulations worldwide but also a great opportunity for LNG to establish itself as a fuel for ship transportation in Korea, a traditional shipbuilding and shipping powerhouse."