Korea Gas Corporation entering full swing into LNG bunkering project

Korea Gas Corporation entering full swing into LNG bunkering project

Korea Gas Corporation recently signed a joint venture agreement (JVA) with Korea Linde Corporaton to jointly participate in Shell’s 18,000m3 LNG bunkering vessel chartering business for supplying clean fuel for ships.

The project is to select a charter company for the supply and operation of bunkering vessels to be operated in areas selected by Shell in the future, under a five-year contract period which can be (optional) extended for up to two additional years.

The bunkering vessels, which will be jointly owned by Korea Gas Corporation and Korea Line Corporation, is around 2.5 times larger than the 7,500m3 class vessel that is currently universal, and can supply LNG to large-sized vessels such as container ships and tank ships.

Korea Gas Corporation is expected to help vitalise the Korean bunkering business as it will be able to participate in this project with a 40% stake, to gain experience in advanced business models and secure practical data on operation of bunkering vessels.

Furthermore, Korea Gas Corporation is predicted to be able to introduce vessels with proven stability in future bunkering businesses by holding a preferential right to the vessels after the termination of the charter contract with Shell.

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