Kospo said in a statement on Tuesday that it has signed a memorandum of understanding (MoU) with Posco International to revitalize the domestic LNG bunkering business.
Through this public-private agreement, Kospo will be able to conduct domestic LNG bunkering via Posco International, starting in 2027.
Kospo noted that it has introduced the LNG-fueled bulk carriers HL Nambu 1 and HL Nambu 2 in its fleet in 2023.
H-Line Shipping owns these LNG dual-fuel vessels built by Hyundai Samho.
Since their maiden voyage in 2023, Kospo has sourced fuel for these vessels from overseas locations like Singapore due to the reduced competitiveness of domestic LNG bunkering, the company said.
Kospo said this process resulted in unnecessary travel routes and time losses, consistently highlighting the need for a domestic LNG bunkering business.
The company noted that this agreement is “significant” and “pioneering”, where a public institution and a private company collaborate to revitalize the domestic LNG bunkering business.
It is particularly expected to serve as an “important stepping stone for Korea to leap forward as a global LNG bunkering hub by combining private and public efforts in the era of energy transition.”
In addition to this deal, Kospo recently signed a 10-year deal with LNG importer Kogas to buy natural gas from the latter for power generation.
Kospo will receive a total of 4.4 million tons of natural gas from Kogas for 10 years from 2027.
According to Kospo’s website, the firm has seven LNG power plants: Shinincheon, Busan, Namjeju, Yeongwol, Andong, ShingSejong, and Hanlim.
