Report: Kogas plans LNG newbuilds and conversion orders
South Korea’s Kogas, the world’s largest corporate buyer of LNG, is reportedly set to order two carriers in the first half of next year, to boost the development of LNG bunkering infrastructure in the country’s ports.
A company spokesperson told Business Korea that in addition to the newbuilds the company is looking to convert two additional vessels into LNG carriers by the end of February 2017.
The plans to expedite orders come following the government’s initiative to increase the number of LNG-fueled ships in order to meet the global cap on sulphur content for marine fuels will come into effect from January 2020.
Earlier in August, Kogas CEO, Lee Seung-hoon said in an interview with Yonhap News Agency that the order will be placed with local shipyards.
The government is looking to support the shipbuilding industry, as well as the use of LNG-fueled vessels through exemption of port service fees and tax incentives.
The report shows a market worth US$450 million annually would be created in order to expand the LNG ship market and the related bunkering infrastructure.
Kogas is part of the government’s plan as LNG bunkering services will initially be offered at the company’s facilities.
Under the medium and long-term plans, South Korea intends to build separate LNG bunkering facilities in the ports of Busan and Ulsan, with three more planned by 2025.
LNG World News Staff