03SEP2019 - News - S. Korean Shipbuilders Betting on LNG-powered Vessels

South Korean shipbuilders are focusing on strengthening their competitiveness in environmentally friendly vessels, including LNG-fueled ships, as the International Maritime Organization (IMO) 2020 fuel regulation comes into effect in January next year. As LNG fuel-powered vessels are expected to account for more than 60 percent of the global new shipbuilding orders by 2025, domestic dockyards are seeking to secure technical competitiveness ahead of their rivals in China and Japan.

The South Korean government is planning to place orders for a total of 140 LNG fueled ships over the next six years from 2020 to 2025 after wrapping up pilot projects this year, according to the Ministry of Trade, Industry and Energy (MOTIE) and shipbuilding industry sources on Sept. 2. This is part of its plans to convert government and private vessels into LNG-fueled ships. Accordingly, the ministry has set aside 2.80 billion (US$2.31 million) and 8.50 billion won (US$7.01 million), respectively, for building two LNG-fueled towing ships and conversion of outward-bounders to eco-friendly ships.