KOREA LNG BUNKERING

KOGAS(CEO Hee-Bong Choi) announced on December 4th that they founded the “Subsidiary company for LNG bunkering business(“Korean LNG Bunkering Inc.”)”. 

They hosted the inaugural and foundation capital payment assembly on December 4th and completed the registration of incorporation on the 9th.
KOLB is the 100% Subsidiary of KOGAS. To reduce the business risk and enhance the competitiveness, it will sell the stake to private sector during the first half of 2021, and operate as a joint company.

By the end of this month, KOLB will register for business and  ‘Natural marine fuel business’ to Ministry of Trade and Industry , and initiate the business from next January when the revised ‘Urban Gas Business Act’ comes into effect that will include the business for natural marine fuel.
LNG bunkering business is a business that supply LNG as a fuel to LNG propulsion vessel. IMO will regulate the sulphur content of fuel used by vessel to less than 0.5% from January 1st 2020,  and many countries will implement the same or more strict sulphur content in fuel on their territorial waters. 
In accordance with this regulation, it will lead to increased number of eco-friendly LNG bunkering shipbuilding in long term, and by year 2030, the use of LNG as marine fuel will increase up to 1.4 million ton in Korea, and about 30 million ton in the world.

KOGAS has successfully completed the ‘world’s first STS(Ship-to-Ship) LNG loading test for the trial operation of LNG transport vessel’ on December 3rd. It is remarkable as it is the first time in Korea to verify the technical stability and STS operation know-how for the LNG bunkering.

An official from KOGAS said “With the successful launching of LNG bunkering subsidiary company, the vitalization of domestic LNG bunkering business will not only contribute to the improvement of air pollution, but also contribute to the improvement of domestic shipbuilding industry along with the increased order for LNG propulsion vessels”.