Photo: Illustration only (Courtesy of KOGAS)

KOGAS orders LNG bunkering vessel at HHI

Korea Gas Corporation (KOGAS), South Korea’s LNG importing giant, has placed an order for an LNG bunkering vessel at Hyundai Heavy Industries.

KOGAS orders LNG bunkering vessel at HHI
Illustration only (Courtesy of KOGAS)

KOGAS noted in its statement, its LNG bunkering unit signed the shipbuilding contract was signed on March 24.

The vessel will have a capacity to hold 7,500 cubic meters of LNG.

The company noted that the vessel’s construction will be subsidized with 15 billion South Korean Won ($13.4 million) by the country’s Ministry of Trade, Industry and Energy.

KOGAS noted that the subsidy will help reduce the LNG supply price which is bumped by the initial lack of demand.

A company official added that KOGAS intends to start ship-to-ship bunkering operations this year, using the SM Jeju LNG 2, Asia’s first LNG bunkering vessel.

The newly ordered LNG bunkering vessel is scheduled for delivery in 2023.

KOGAS, with its LNG bunkering joint venture partners, plans to supply 1.36 million tons of LNG for ships by 2030.

The state-owned firm plans two LNG bunkering ships in the East Sea and the South Sea, and one vessel in the West Sea, it said.

The plans also includes an LNG bunkering facility in Dangjin.