The Korean government has instigated a massive program of support for small and mid-sized shipbuilders to develop Liquefied Natural Gas (LNG) propulsion ship designs and enhance construction capacity, to boost industry vitality.
The measures included the implementation of 140 LNG fuel orders over six years, starting with pilot projects in 2019 and shipbuilding through 2020-25.
The program will be overseen by the Ministry of Trade, Industry and Energy (MOTIE) with support from related ministries. 140 LNG-powered vessels worth 1 trillion won (USD 880 million) will be ordered by the government, and 1.7 trillion won (USD 1.5 billion) will be earmarked for financial aid to prop up the country’s ailing shipbuilding industry.
Small and mid-sized shipbuilders and equipment companies that lack the capability to respond in this environmentally friendly and smart paradigm will be targeted. The program intends to improve and provide differentiated competitiveness from other countries such as Japan and China by focusing on the environment-friendly future ship market.
Technology development for small and medium sized LNG fuel propulsion ship design and equipment will be completed in ’19 and will be distributed to small and mid-sized shipbuilders through demonstration projects. Design elements include LNG fuel line design technology, and LNG fuel line engines and LNG fuel tank technology for small ships.