The Research Institute of Ships and Ocean Engineering (“KRISO” hereinafter, President Suh, Sang-hyun) will join forces with the public and private sectors as well as academic institutions to secure a new growth engine.

KRISO will sign a memorandum of understanding (MOU) with 14 public, research, academic, and business organizations and associations to jointly develop LNG bunkering infrastructure through public-private partnership on Monday, July 25 at Jade Room, Lotte Hotel Ulsan.

* Participating institutions and organizations (14): KRISO, Ulsan Metropolitan City, Ulsan Port Authority, Korea Gas Corporation, Korea Gas Technology Corporation, University of Ulsan, Korea LNG Bunkering Industry Association, Hyundai Heavy Industries, SK Shipping, Energy Innovation Partners (EIP), Korea LNG Solution, NK, Daechang Solution, and Unisys International

* LNG Bunkering: Injection of LNG as fuel for ships

As the International Maritime Organization (IMO) imposes more stringent regulations on emissions from ships, LNG is gaining attention as a source of clean fuel for ships. Already, LNG bunkering is being implemented in some areas designated for emission control (known as “emission control areas (ECAs)”) in Europe and North America.

Vigorous implementation of LNG bunkering will also lead to greater demands for LNG fueled ships, which is expected to energize the domestic ship building industry that has been undergoing a slowdown lately. As such, the need for promoting the LNG bunkering business as a new growth engine for the shipbuilding and offshore plant industry has risen steadily.

To meet this need, related organizations such as KRISO, Ulsan Metropolitan City, Ulsan Ports Authority, and Korea Gas Corporation put together a taskforce team for LNG Bunkering at Ulsan Port from early this year in order to carry out basic research on LNG bunkering, establish mid- to long-term plans to promote the Ulsan Port LNG bunkering project, and to discuss ways for cooperation among the organizations involved. The MOU will be signed as a way to strengthen the project’s capacity for implementation and to foster mutual cooperation among the participating organizations.

Under this MOU, the LNG bunkering project’s scope will include establishment of LNG bunkering infrastructure at Ulsan Port, planning and technical analysis for building a floating LNG bunkering terminal (FLBT), and development of materials, equipment, and systems to support LNG bunkering. The MOU defines respective roles for each of the 14 participating organizations so that the competencies and capabilities from each of the organizations will be combined and maximized for successful completion of this project. The agreement for cooperation will be effective for three years after the MOU signing.

Director Seong Hong-geun of Offshore Plant Research Department at KRISO said, “By 2020, LNG fueled ships will account for almost 10% of all newly built ships, and the market for bunkering will reach over 5 trillion KRW. Considering this, the signing of the MOU among related organizations and private businesses to build LNG bunkering at Ulsan Port will be an opportunity to secure a new growth engine for the domestic shipbuilding and offshore plant industry, and will pave the way for successful completion of this project.