South Korean trio explore LNG bunkering in Ulsan

SK Gas, H-Line Shipping and the Ulsan Port Authority will develop ship-to-ship LNG bunkering at South Korea’s Port of Ulsan.

PHOTO: Aerial view of gas tanker ship at Ulsan Port in South Korea. Getty Images

Ulsan Port is a major hub for domestic imports and exports in South Korea. It is also adjacent to the country's largest port, Busan, and not far from the ports of Pohang and Gwangyang, which handle bulk cargo.

These factors make it "optimal" for LNG bunkering, SK Gas argues.

The partners are expected to establish a joint venture (JV) company in the first half of 2024. The JV will manage all aspects of LNG bunkering, from building LNG bunker vessels to organising bunkering operations.

PHOTO: 3D blueprint of the upcoming Korea Energy Terminal at Ulsan Port in South Korea. Korea Energy Terminal

Meanwhile, LNG supplier SK Gas is working with Korea National Oil Corporation (KNOC) to develop LNG and oil bunker infrastructure at the upcoming Korea Energy Terminal in Ulsan. As part of the project, SK Gas will build LNG storage and loading infrastructure at the port, in addition to supplying the LNG as bunkers.

Korea Energy Terminal will house three LNG tanks with 645,000 cbm of capacity each, as well as two LNG bunkering docks. The first bunkering pier will be able to bunker vessels up to 10,000 dwt and is expected to be commercially operational by 2024. Further expansions will include a bunkering pier for ships up to 100,000 dwt and ammonia storage facilities.

“In accordance with the global carbon-neutral trend, demand for LNG bunkering, a low-emission energy source, is expected to exceed 20% of the total ship fuel market in the mid-to-long-term,” according to SK Gas.

By Konica Bhatt

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