SK Gas, a unit of South Korean conglomerate SK Group, is joining forces with compatriot shipping firm H-Line and the Ulsan Port Authority to develop a liquefied natural gas (LNG) bunkering project.
In that regard, the trio signed a memorandum of understanding for a public-private joint project, according to a statement by SK Gas.
SK Gas, H-Line Shipping, and UPA will now work to create a joint venture for the project in the first half of 2024.
Following the formation of the new firm, the partners plan to build a new LNG bunkering vessel, the statement said.
With this move, SK Gas will enter the LNG bunkering business.
SK Gas is a partner in Korea Energy Terminal (KET) along Korea National Oil Corporation.
Back in 2020, Daewoo E&C won a contract for the first phase of this project in the port of Ulsan which includes the construction of a 215,000-cbm LNG tank and additional regas facilities with about 1 mtpa capacity. It also won a contract for the second phase with the same scope the same year.
Last year, a consortium led by Daewoo E&C also won the contract for the third phase as well and the full project will have three LNG tanks with a total capacity of 645,000 cbm.
The terminal also includes a berth for LNG bunkering vessels.
KET plans to launch commercial operations of the first and second phase in 2024.