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LATEST: South Korea to ‘revitalise’ LNG-fuelled shipbuilding sector

Intends to establish a cooperative system to share LNG policy know-how with Singapore.

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The South Korean government held a "7th Ministerial Meeting on Economic Relations" at the Seoul Metropolitan Government Building at 7:00 am on Thursday (17 May) to introduce plans to revitalise the liquefied natural gas (LNG) related shipbuilding industry, says the Ministry of Oceans and Fisheries.

It noted the International Maritime Organization (IMO) planning to introduce a sulphur cap of 0.5% for marine fuels from 2020 and expects the number of vessels using LNG as a bunker fuel to “increase significantly”.

Delegates were briefed that LNG-powered vessels are priced at about 20% higher than those of existing vessels, and domestic LNG fuel supply of bunkering systems in South Korea are also lacking.

However, countries such as Europe, China, and Singapore are paying attention to LNG-powered vessels as future growth engines and are making “quick progress” on the LNG bunkering front.

Accordingly, the government intends to introduce plans to revitalise the LNG-related shipbuilding industry for the construction of LNG fuelled vessels.

“In the private sector, we will also promote the first domestic LNG-powered offshore vessel to be ordered by August this year,” it states.

“Currently under review, two 200,000-ton bulk carriers are scheduled to operate on Korean and Australian routes.

“In addition, we will support business feasibility studies and international cooperation in order to facilitate the pilot project of introducing LNG-powered vessels under consideration by major ship owners such as POSCO and Southeast Power. 

“A pilot project to convert LNG carriers will also be launched next year for towing ships with large dust emissions.”

Meanwhile, the government intends to revise relevant laws and regulations such as the Urban Gas Business Act and the Port Transport Business Act, while introducing LNG bunkering operation technology and worker safety training schemes, to create a base for building the domestic LNG bunkering market.

A mid- and long-term roadmap will also be drawn up to build a LNG bunkering infrastructure (considering LNG fuel demand and harbour conditions) and LNG bunkering facilities at major ports such as Busan Port and Ulsan Port. 

“We will also build a foundation for LNG bunkering technology. To this end, we will develop 'LNG bunkering system customized for coastal vessels' that is suitable for domestic small-sized coastal bunker bunkering,” notes the government.

“In addition, it will support localisation development of LNG bunker equipment such as pumps, cryogenic hoses, etc., and establish LNG bunker equipment test evaluation and certification system to support commercialisation after technology development.”

Moving forward, the government says it will “actively participate” in discussions on the revision of the IGF Code related to the LNG-powered vessels, which is currently under discussion at IMO, to reflect the position of the South Korean domestic industry. 

An example is, POSCO’s plans to support its high-manganese steel product, a new material for LNG fuel tanks, to be listed on the International Safety Standards (IGF Code). 
   
The government also intends to establish a cooperative system to share policy know-how with Singapore, which it believes “is leading the international LNG network”, and participate in discussions to develop international joint LNG bunkering standards and procedures and emergency manual reports.

“This project is a key project for the growth of shipping and shipbuilding and we look forward to a new breakthrough in the maritime industry in which the LNG-related shipbuilding industry is stagnating,” said Minister Kim Young-chun of the Ministry of Maritime Affairs and Fisheries.

“We will closely examine the situation with the related ministries such as the Ministry of Industry and the Ministry of Land, Infrastructure and Transport so that related new industries such as LNG bunkering can be settled early.”

The Korea Shipbuilders' Association Wednesday introduced the Korea GHG Reduction Response Research Council as a response to the IMO greenhouse gas (GHG) reduction deadline of 2050.

Related: South Korea responds to IMO’s 2050 GHG deadline

Photo credit: Ministry of Oceans and Fisheries
Published: 17 May, 2018

 

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Alternative Fuels

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026 compared to 155 in the same period in 2025.

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DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform showed a total of 15 new orders for alternative-fuelled vessels were placed in June 2026.

This consisted of 10 orders for LNG-fuelled vessels, nine of which were car carriers and one a CO2 carrier. The remaining five orders were for LPG/ethane carriers.

Two LNG-bunker vessels were also ordered in June, bringing the total in this segment to seven so far in 2026.

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026, down 11.6% from 155 in the same period in 2025. 

Over half of these (73) were for LNG-fuelled vessels, with most coming from the container (42) and car carrier (21) segments. LPG/ethane carriers were also prominent, with 55 new orders, a significant uptick compared to the first half of 2025 (15). The remaining orders were for vessels fuelled by methanol (2), ethanol (2), ammonia (4), and hydrogen (1).

Deliveries in the first half of the year point to continued uptake of alternative-fuelled tonnage across several segments, with 61 LNG-fuelled vessels and 38 methanol-fuelled vessels delivered so far in 2026.

More recently, Exmar took delivery of what it described as the first oceangoing dual-fuel ammonia vessel, marking a step beyond earlier ammonia-fuelled deliveries, which have largely been associated with pilot or demonstration projects rather than commercial deployment.

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “What we can take away from the first half of 2026, in terms of the alternative-fuels orderbook, is that we have a market progressing at different speeds depending on segment economics, fuel availability, and the regulatory landscape. Shipowners and other stakeholders are pursuing different pathways based on their individual priorities and requirements.

“LNG remains the leading near-term fuel option, with order activity continuing to be led by containers and car carriers. LPG and ethane carriers have also accounted for a significant share of activity in the first half of the year, while developments in areas such as ammonia and ethanol show that multiple pathways continue to be explored.”

 

Photo credit: DNV
Published: 3 July, 2026

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Methanol

China: Zhejiang completes first ship-to-ship methanol bunkering operation at shipyard

Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker “JIA CHEN 17” supplied 795 mt of methanol to a newly built 5,900 TEU Maersk methanol dual-fuel container vessel.

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China: Zhejiang completes first ship-to-ship methanol bunkering at shipyard

China (Zhejiang) Pilot Free Trade Zone on Tuesday (30 June) said it has completed the province’s first ship-to-ship (STS) methanol bunkering operation at a shipyard, marking a new milestone in Zhoushan’s efforts to expand its portfolio of alternative marine fuel bunkering services.

The operation took place recently at Qingshan West Berth No. 2 of Tsuneishi Group (Zhoushan) Shipbuilding, where Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker JIA CHEN 17 supplied 795 metric tonnes (mt) of methanol to the newly built 5,900 TEU methanol dual-fuel container vessel MAERSK FLINDERS.

The bunkering operation was completed in approximately 5.5 hours, making it significantly more efficient than truck-to-ship methanol bunkering, which authorities said would have taken around nine times longer to deliver the same volume

According to local authorities, the operation is the first of its kind at a shipyard berth in Zhejiang Province, filling a gap in on-site bunkering capabilities for shipbuilding and repair yards. Zhoushan has previously conducted truck-to-ship methanol bunkering, truck- and ship-to-ship LNG bunkering, and blended biofuel bunkering operations.

The demonstration project forms part of Zhejiang’s strategy to develop green marine fuel bunkering under the China (Zhejiang) Pilot Free Trade Zone Bulk Commodity Resource Allocation Hub Development Plan, which calls for pilot bunkering of alternative fuels including green methanol, liquid hydrogen and ammonia.

Earlier this year, the China (Zhejiang) Pilot Free Trade Zone‘s Zhoushan Administrative Committee identified three priority projects: the world’s first anchorage ammonia bunkering operation, Zhejiang’s first shipyard-based STS methanol bunkering operation, and simultaneous LNG bunkering alongside cargo operations at Yongzhou Terminal, Ningbo-Zhoushan Port.

Authorities said the shipyard-based STS model offers operational advantages over both ship-to-ship and anchorage STS bunkering. In addition to reducing inter-island transport and lowering overall costs, conducting the operation alongside at the shipyard minimises weather-related disruptions and improves operational safety and schedule certainty.

 

Photo credit: China (Zhejiang) Pilot Free Trade Zone
Published: 2 July, 2026

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Bunker Fuel

AD Ports Group and IRH Global Trading to advance bunkering at Khalifa Port

Both signed a MoU, outlining potential collaboration in bunkering services to vessels calling at Khalifa Port and the development of alternative bunker fuels such as LNG, biofuels, and methanol.

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AD Ports Group and IRH Global Trading to advance bunkering at Khalifa Port

AD Ports Group on Tuesday (30 June) said it has signed a Memorandum of Understanding (MoU) with IRH Global Trading Ltd. to explore strategic cooperation in bunkering services and alternative marine fuels at Khalifa Port.

The MoU outlines potential collaboration across a range of areas, including the provision of bunkering services to vessels calling at Khalifa Port, the development of alternative fuel solutions such as Liquefied Natural Gas (LNG), biofuels, and methanol, and the exploration of opportunities related to fuel storage infrastructure, terminal facilities, and fuel sampling and testing capabilities.

Saif Al Mazrouei, CEO, Ports Cluster – AD Ports Group, said: “This collaboration reflects our commitment to forging strategic alliances that create long-term, sustainable value. 

“By working alongside trusted partners such as IRH, we are enhancing our capabilities and supporting the development of future-ready infrastructure and services that reinforce the UAE’s position as a leading global trade and logistics hub, in line with the vision of our wise leadership.”

Ali Rashed Alrashdi, Group CEO – International Resources Holding, said: “This collaboration with AD Ports Group reflects IRH’s commitment to build strategic partnerships that drive real economic impact. 

“As we continue to develop our global energy trading platform, bunkering and alternative marine fuels represent a high-potential area of growth. We see Khalifa Port as an ideal base from which to explore these opportunities, and we look forward to working closely with AD Ports Group to bring them to life.”

Through this collaboration, AD Ports Group and IRH Global Trading aim to further enhance Khalifa Port’s value proposition as a multi-purpose, deep-water port that supports efficient, sustainable, and future-oriented maritime operations.

IRH Global Trading is a global commodities trading firm with interests across the mining and energy value chain and plans to build a diversified global minerals and energy trading platform, including LNG, Liquefied Petroleum Gas (LPG), crude oil, and petroleum products. 

 

Photo credit: AD Ports Group
Published: 1 July, 2026

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