Korea's Ulsan Port Eyes LNG Bunkering with Public-Private Sector Cooperation Agreement

UPA says it has signed a three year cooperation agreement

In order to support the Ulsan's efforts to become South Korea's first LNG bunkering port, the Ulsan Port Authority (UPA) has announced that it has signed a three year cooperation agreement among 14 public and private organisations.

The agreement is said to be intended to facilitate an examination of the development of LNG bunkering infrastructure and bunker supply at the port, as well as the procurement of related supply equipment.

Signatories to the cooperation agreement are noted to include municipal authorities, Korea Gas Corporation (KOGAS), Korea Gas Technology Corporation (KOGAS-Tech), Hyundai Heavy Industries Co., Ltd. (HHI), SK Shipping, Korea Research Institute of Ships and Ocean Engineering (KRISO), Ulsan University, Korea elenji solutions, NK, South Korea LNG Bunkering Industry Association, Energy Innovation Partners (EIP), Daechang Solutions, and Unisys International.

UPA says the agreement is motivated by an obvious global shift toward LNG as marine fuel, which is largely driven by tightening environmental regulations.

"It is not disputed that there is a global gravitation towards LNG bunkering and Singapore and Rotterdam also plan to launch LNG bunkering to cement their statuses as oil and energy hubs," said UPA, as reported by IHS Fairplay.

"From this perspective, the signing of this private-public cooperation agreement is expected to enable LNG bunkering to become a new growth engine for Ulsan port, and contribute to the port's success in becoming the oil hub of Northeast Asia."

The agreement is said to be just the latest development in support of the development of LNG bunkers in the region after UPA, KOGAS, and municipal authorities created a task force early in 2016 to focus on the issue.

In June, Kosan Crisplant A/S (Kosan Crisplant) announced that it had signed a Memorandum of Understanding (MoU) with KOGAS that will see the development of LNG bunkering and bunkering facility technologies, including high efficient BOG (boil off gas) treatment and small-scale LNG.