South Korean shipping company H-Line Shipping is teaming up with industry partners and the 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 revitalizing its shipbuilding sector which was badly hit by the industry slump.
The Korean 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 Sulfur cap. The move is expected to bridge the 20 pct 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 serve as the starting point for a feasibility study on the design and construction of the LNG-fuelled bulker, and if all goes well, H-Line Shipping will move forward with the ordering of the construction of a bulk carrier featuring the design in 2018.
The feasibility study is expected to be completed in the first half of next year.
World Maritime News Staff