• 18 Apr 2017

KLC teamed with Samsung Heavy Industries for the bid and was selected as its bid price was the lowest among the participants, which included Polaris Shipping, KSS Line, Hyundai LNG Shipping, and H-Line Shipping. KOGAS will take the ships on period charter for 20 years.

The 7,500 m3 ships are to shuttle an aggregate of 11.2 million tonnes of LNG from Tongyeong LNG Terminal to Jeju City Gas' new plant, which is under construction and set to begin operations in 2018. KOGAS, the state-owned LNG procurement body, has signed an LNG supply contract with Jeju City Gas, agreeing to ship LNG to the latter from 2019.

Until then, Jeju's power generation will be fuelled solely by LPG. In order to facilitate the receipt of LNG cargoes, KOGAS is now building an LNG base in Jeju's Aewol port. The first of the two vessels is scheduled to commence LNG deliveries in May 2019 and the other vessel will do so in December 2019.