Gas Gong Consortium Selected as Support Operator for LNG Bunkering Ship Project

Korea Gas Corporation announced on the 24th that it has been selected as the executing agency for the "Liquefied Natural Gas (LNG) Bunkering (Fuel Supply) Ship Construction Support Project" led by the Ministry of Trade, Industry and Energy. A bird's-eye view of the LNG bunkering ship to be constructed by Korea Gas Corporation. (Photo by Korea Gas Corporation)

[Asia Economy Reporter Moon Chae-seok] Korea Gas Corporation announced on the 24th that it has been selected as the executing agency for the "Liquefied Natural Gas (LNG) Bunkering (Fuel Supply) Ship Construction Support Project" led by the Ministry of Trade, Industry and Energy.

Earlier, in June, the Ministry of Trade, Industry and Energy announced the LNG bunkering ship construction support project, providing a government subsidy of 15 billion KRW to promote the construction of LNG-powered ships through stable LNG bunkering supply.

Korea Gas Corporation formed a consortium with Busan Port Authority, POSCO International, S-Oil, and Daewoo Logistics, applied for the project, and was selected as the executing agency on the 18th of this month.

The project supports the construction of the country's first dedicated LNG bunkering vessel, with a total scale of 49.8 billion KRW (15 billion KRW from the government and 34.8 billion KRW from private investment).

It will support the construction of one LNG bunkering vessel with a cargo hold capacity of over 7,500㎥ by the end of 2022.

With the introduction of the dedicated LNG bunkering vessel from the second half of 2022, stable fuel supply to LNG-powered ships will be possible, which is expected to expand the distribution of LNG-powered ships.

The increase in orders for LNG-powered ships will not only provide a foothold for the revival of the currently stagnant domestic shipbuilding industry but is also expected to contribute to enhancing international port competitiveness as the number of LNG-powered ships calling at domestic ports increases.

Korea Gas Corporation has set a goal to establish an LNG bunkering joint venture this year and achieve LNG bunkering supply of 1.36 million tons and sales of approximately 1 trillion KRW at ports nationwide by 2030.

A Korea Gas Corporation official said, "We will proactively respond to the recently strengthened global maritime environmental regulations and strive to establish LNG as a marine fuel in Korea, a strong nation in shipbuilding and shipping."