Kogas forms FSRU consortium with compatriot shippers

Kogas forms FSRU consortium with compatriot shippers
Illustration purposes only (Image courtesy of Höegh LNG)

South Korea’s Kogas, the world’s second-largest corporate buyer of LNG, forged ties with several shipping companies to take part in the overseas FSRU market. 

The consortium, comprising Kogas, H-Line Shipping, Pan Ocean, Hyundai LNG Shipping, SK Shipping and Korea Line Corporation, intends on bidding to operate overseas FSRU projects, local media reported.

The FSRU market has garnered the interest of major LNG players due to lower initial investment costs and shorter development period, as it enables faster access to natural gas to emerging markets in Asia and Latin America.

Currently, there are 27 FSRUs in operation while 83 projects are pending approval.

The agreement to take part in the FSRU market is also seen as a move to try boosting South Korea’s shipping and shipbuilding industry that has been going through a downturn.