South Korean shipping company H-Line Shipping is getting into a partnership with the industry and Government on the design and construction of an LNG-fueled 80,000 dwt bulk carrier.
The project is part of a Government initiative aimed at providing support for the introduction of LNG-powered ships in the country and revitalising its shipbuilding sector which has been affected by a slowdown.
The Government plans to provide financial backing for the introduction of LNG-powered ships, as a way of speeding up the uptake of the technology, especially in the wake of ever more stringent environmental regulations, including the IMO 2020 Sulphur cap.
The move is expected to bridge the 20 per cent cost gap between investment into vessels with standard engines and those equipped with LNG tanks.
H-Line Shipping will be joined by KOGAS, POSCO Terminal Co, and Kore South-East Power, the Ministry of Oceans and Fisheries (MOF) said. The coalition is scheduled to ink a collaboration agreement with MOF and Ministry of Trade, Industry, and Energy on December 13.
The deal will mark the beginning of a feasibility study on the design and construction of the LNG-fuelled bulker, and if the processes materialise, H-Line Shipping will go ahead with ordering the construction of a bulk carrier featuring the design in 2018.
Sea News, December 13