Seven South Korean shipping companies have teamed up with local shipbuilders in the race for construction of six Korea Gas Corporation’s (Kogas) LNG carriers, the world’s largest LNG buyer Kogas said.
As the ships need to be indigenously-built and run, only local companies are eligible to bid for the deal.
As explained by Kogas official, cited by Platts, the seven teams have submitted their applications for formal bids and the final result is due on October 24th.
H-Line Shipping partnered up with Samsung Heavy Industries, Hyundai Glovis and KSS Line teamed up with Hyundai Heavy Industries, Hyundai LNG Shipping and Korea Line Corporation with DSME, Pan Ocean with Hanjin Heavy and SK Shipping formed partnership with Hanjin Heavy Industries, according to the announcement.
“Hyundai Glovis, KSS Line, H-Line and SK Shipping have offered applications for the two KC-1 vessels. The two smaller shippers — Hyundai Glovis, KSS Line — can win only one vessel, while the other six shipping lines can win up to two carriers,” Platts writes.
Kogas issued the official tender to charter six LNG carriers to ship from US Sabine Pass project at the beginning of September.
Under the deal, the 174,000 cubic meter vessels would be operated through a bareboat charter hire purchase (BBC-HP) slated to start loading in May, 2017 and deliver supplies for 20 years.
The newly developed KC-1 cargo hold system together with Kogas’ onshore membrane LNG tank are planned to be used on two ships.