Korea Gas Corp. signed an agreement with Busan Metropolitan City on cooperation to convert the diesel-burning ships owned by the metropolitan city to use LNG for fuel, which will speed up the arrival of the LNG age for the yard tractors at Busan Harbor and increase the number of ships powered by LNG.
Busan City plans to convert two of the 28 ships operated by the marine fire brigade at Busan Harbor to burn LNG for fuel by 2017 and the rest of the fleet will also be refitted to burn LNG in the years to come.
Kogas officials said the agreement, with Busan City, will also expedite plans to localize the technology to convert small vessels to be powered by LNG. Domestic shipbuilders are building large LNG-powered ships, but key equipment is being imported for small LNG vessels. Kogas plans to build small LNG terminals at large harbors in Korea to supply LNG to small vessels, and Kogas also plans to develop facilities to supply LNG to those small vessels in cooperation with the ships’ owners, creating a successful model of cooperation and mutual growth between the state-owned firm and small ship operators.
The agreement signed by Kogas and Busan City will help Busan City’s plan to keep air clean of pollutants and also act as a catalyst in expanding the number of ships powered by LNG in Korea, Marketing Manager Park In-hwan of Kogas said.
When a diesel-burning vessel is refitted to burn LNG, it will help reduce pollutants in the air: 100 percent of sulfur; and 23 percent of Co2 will be removed from the ship’s emissions. At the present time, the Econuri, built in 2013, is the only ship converted to burn LNG for fuel, which is owned by the Incheon Harbor Corp.
Kogas began to supply LNG at Busan Harbor from November, last year, to yard tractors moving containers at the harbor under a contract signed with the Busan Harbor Authority and Samjin Yard. The gas company refitted the two diesel-burning yard tractors to use LNG as fuel and proved that it can save fuel costs and improve the environment.
As a result, the Ministry of Marine Affairs decided to provide government support for the project by sharing half of the 45 million won in expenses, and was able to convert 38 yard tractors to burn LNG.
The global market for the construction of LNG-fuelled ships is expected to increase from the current 6 trillion won (US$5.24 billion) to around 150 trillion won (US$131 billion) in the next 10 years, South Korea’s Ministry of Trade, Industry and Energy said in a statement.
The ministry said that the construction of LNG bunkering terminals at the country’s major ports would be a long-term investment which would allow newly constructed LNG-fuelled ships to depart for the ECA (Emission Control Areas) countries powered by this more environmentally friendly fuel.
The first LNG bunkering facility is planned to be constructed in the city of Tongyeong by 2017, as part of the existing public gas terminal.
The cities of Gwangyang, Boryeong and Incheon are next in line to receive LNG bunkering facilities.
World Maritime News Staff
The global risk management company Det Norske Veritas (DNV) and Korea’s national gas company, Korea Gas Corporation (KOGAS), have signed an agreement to cooperate on a feasibility study on the establishment of an LNG bunkering infrastructure in Korea.
Under the agreement, DNV will look at the possibility of implementing LNG bunkering in Busan in the southeastern area, and Incheon and Pyeongtaek in the western area.
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