Asia/Pacific News
South Korea Aims to Become Regional LNG Bunkering Hub
Lee Kwan-Sup, South Korea's Vice Minister of Trade, Industry and Energy Friday said the country intends develop its coast as a liquefied natural gas (LNG) bunkering hub in the region, Platts reports.
"If South Korea establishes a major LNG bunkering center on its coast, it can increase LNG import volumes, which will help sharpen its bargaining power as a main buyer," explained Lee Kwan-Sup, Vice Minister of Trade, Industry and Energy, noting that the country is eyeing a growing demand for the fuel in the maritime sector resulting from stricter environmental regulations.
"South Korea imports huge volumes of LNG for power generation and heating. LNG bunkering will add the country's import volume, strengthening its bargaining position."
The bunkering plan is said to be part of a larger strategy to support LNG use within the country, which has been experiencing a decline alongside shrinking domestic energy demand.
"The government will take necessary measures for LNG bunkering, such as providing legal foundation and building facilities, to boost South Korea's competitiveness in the environment-friendly maritime industry," said Lee.
Park In-Whan, executive vice president and COO of state-owned Korea Gas Corp. (Kogas) says requests from South Korea's shipyards and shipping industry requests sparked the country's drive to foster LNG bunkering market.
"South Korea houses the world's biggest shipyards and major ports in the Asia-Pacific and can be an ideal place for becoming an LNG bunkering hub in Northeast Asia," Park, adding: "use of environment-friendly maritime transportation fuel is a key trend we should follow."
However, with current prices making conventional bunkers more affordable compared to LNG, whether the region's ship owners and operators will follow suit in the adoption of LNG is said to remain uncertain.
In February, Ship & Bunker reported that South Korea was making progress with its LNG bunker infrastructure after a report by Singapore-based consultancy TRI-ZEN International Pte Ltd (TRI-ZEN) indicated that dedicated LNG bunkering services at Tongyeong are set to start in 2017.
