Industry Information

Title LNG Renaissance Emerging in Shipbuilding Horizon
Manager Ralphy Song Department in charge Exhibition Managment Team
Contact 02-3459-0028 Date 2018-05-03 09:53:53.693

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LNG Renaissance Emerging in Shipbuilding Horizon
Invigorative Measures for LNG-Fueled Ships & LNG Bunkering




The Korean government has mapped out a policy package to invigorate shipbuilding and offshore industry, which, above all, set forth support for LNG-related sectors such as LNG-fueled ships and LNG bunkering.

The package, passed through at the 15th Ministerial Meeting on Economy of this year chaired by Deputy Prime Minister Kim Dong-Yeon on April 5, included proactive market creation of LNG-associated areas, which are also conducive to propelling energy ship to eco-friendliness.

Accompanied with the government's budget plan, scaled at a total of 5.5 trillion won to invigorate the shipbuilding and offshore industry, the government will deliver an order for one or two LNG-fueled ships every year, choosing optimum type this year.

On this context, the Ministry of Trade, Industry & Energy (MOTIE) will revise the Urban Gas Business Law, aiming at pacing way for Korea Gas Corporation (KOGAS) to deliver order for LNG bunkering, scaled at 71 billion won . In March, KOGAS, Korea’s national LNG importer, has signed a memorandum of understanding (MoU) with Samsung Heavy Industries, classification society DNV GL, and cargo containment tank maker KC LNG Tech to develop a protocol for LNG bunkering in Korea.

Mirroring Korea's shift to eco-friendly energy resource, the nation's 13th Natural Gas Supply Plan (2018-2031) forecast that LNG demand will grow to 40.49 millions tons in 2031, up 11.1% from this year's 30.46 million tons.

Unveiled by the Ministry of Trade, Industry & Energy, the new forecasts reverse the trend projected in the previous Long-term Supply Plan in December 2015, when the ministry said LNG demand would decrease to 33.96 million tons in 2022 and 34.65 million tons in 2029, compared with 2014 President Moon Jae-in, who took office in May last year, has vowed to increase power generation using LNG and decrease the use of coal and nuclear in order to address mounting public concerns over air pollution and nuclear safety.

Under the country's long-term Basic Blueprint for Power Supply released in December last year, LNG's share in actual electricity production would climb to 18.8% in 2030, up from 16.9% in 2017.

To ensure gas supply security, Korea also seeks to diversify gas supplies and have more flexible LNG contracts that do not include restrictive destination clauses or take-or-pay terms.