South Korea focuses on LNG-fueled vessels to aid shipbuilding industry

South Korea is looking 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.

International Maritime Organization’s Marine Environmental Protection Committee, made the decision to limit the sulphur content of marine fuels to 0.5 percent.

According to a statement by the ministry of oceans and fisheries on Wednesday, 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 government is looking to fund research and development projects in order to develop technology to support the construction of LNG-fueled vessels as well as to localize the necessary parts.

In addition, the ministry said in its statement that the LNG infrastructure will be expanded to support the adoption of LNG as fuel in South Korean ports. Initially, LNG bunkering services will be provided at the existing KOGAS 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.

Further to the development of the infrastructure and the LNG-fueled shipbuilding sector, the ministry is looking to strengthen its cooperation with international organizations and major ports such as ports of Singapore and Rotterdam.

LNG World News Staff