S. Korean shipyards, KOGAS sign MOU on trial run of future LNG ship
South Korean shipyards and the state-run energy company agreed Monday to cooperate on the trial run of a liquefied natural gas (LNG) vessel that uses an locally developed LNG containment system.
The memorandum of understanding between Korea Gas Corp. (KOGAS) and the Korea Shipbuilders' Association calls for joint efforts to test the new LNG containment membrane system, the Ministry of Commerce, Industry and Energy said.
A containment system is a key piece of technology used on all LNG ships that ferry gas in a completely sealed membrane. These containers must withstand extremely high pressure and maintain very low temperatures over long periods of time and in harsh weather conditions.
Local shipyards and the government have invested 11.7 billion won (US$12.5 million) since 2004 to make the new system, and lab tests are expected to be completed this year. Of the total, the government footed 4.9 billion won in research and development costs.
Once the first phase is complete, KOGAS will order an LNG ship with this new technology and operate it on a trial basis to ensure there are no quality or safety problems.
Industry insiders and the ministry said the new LNG ship may undergo tests in 2009.
At present, France's Gaz Transport & Technigaz (GTT) possesses the only viable containment system technology for commercial vessels, and South Korean yards pay steep technology users fees to build these tanks on their ships.
If the trials are successful, South Korean yards can cut royalty payments by US$10 million for every vessel they launch.
"As of February this year, South Korean yards have secured 101 orders for LNG vessels, and if this new technology can be used, it would mean considerable cost cuts," a ministry official said.
He added that many foreign shipping companies were awaiting the trial of the new system since they would be direct beneficiaries of the new containment membranes.
KOGAS ordered LNG ships when South Korean yards first started to make these high-value-added vessels in the early 1990s, giving other shipping companies confidence in their quality and allowing South Korean companies to dominate the business.
In addition to the LNG vessel, the shipbuilders association said it was conducting feasibility research on building luxury cruise ships, which could become the next growth engine for local yards. Depending on the initial findings, the government could decide to contribute funds later this year for more advanced research.
The ministry and shipyards Hyundai Heavy Industries Co., Samsung Heavy Industries Co., and Daewoo shipbuilding and Marine Engineering Co. also concurred on the need to work together on increasing local output of steel plates for ships and training of experts.
The memorandum of understanding between Korea Gas Corp. (KOGAS) and the Korea Shipbuilders' Association calls for joint efforts to test the new LNG containment membrane system, the Ministry of Commerce, Industry and Energy said.
A containment system is a key piece of technology used on all LNG ships that ferry gas in a completely sealed membrane. These containers must withstand extremely high pressure and maintain very low temperatures over long periods of time and in harsh weather conditions.
Local shipyards and the government have invested 11.7 billion won (US$12.5 million) since 2004 to make the new system, and lab tests are expected to be completed this year. Of the total, the government footed 4.9 billion won in research and development costs.
Once the first phase is complete, KOGAS will order an LNG ship with this new technology and operate it on a trial basis to ensure there are no quality or safety problems.
Industry insiders and the ministry said the new LNG ship may undergo tests in 2009.
At present, France's Gaz Transport & Technigaz (GTT) possesses the only viable containment system technology for commercial vessels, and South Korean yards pay steep technology users fees to build these tanks on their ships.
If the trials are successful, South Korean yards can cut royalty payments by US$10 million for every vessel they launch.
"As of February this year, South Korean yards have secured 101 orders for LNG vessels, and if this new technology can be used, it would mean considerable cost cuts," a ministry official said.
He added that many foreign shipping companies were awaiting the trial of the new system since they would be direct beneficiaries of the new containment membranes.
KOGAS ordered LNG ships when South Korean yards first started to make these high-value-added vessels in the early 1990s, giving other shipping companies confidence in their quality and allowing South Korean companies to dominate the business.
In addition to the LNG vessel, the shipbuilders association said it was conducting feasibility research on building luxury cruise ships, which could become the next growth engine for local yards. Depending on the initial findings, the government could decide to contribute funds later this year for more advanced research.
The ministry and shipyards Hyundai Heavy Industries Co., Samsung Heavy Industries Co., and Daewoo shipbuilding and Marine Engineering Co. also concurred on the need to work together on increasing local output of steel plates for ships and training of experts.
