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THE proposed sale of South Korea's leading LNG carrier, Hyundai LNG Shipping, is facing opposition in the domestic shipping industry and possibly the government, reports the Korea Times.
Hyundai LNG Shipping has been working to consolidate its position as a leading specialised liquefied gas carrier raising concerns among the shipping industry over potential foreign control.
According to the report in the newspaper, concerns are being raised both over the impact on Korea's energy security as well as risks to Korea's leadership position in the shipbuilding of gas carriers.
The company is owned by a private equity firm based in Korea, IMM Holdings, a firm with investments in 16 companies and assets valued at US$6.4 billion.
They stepped in during the financial crisis at Hyundai Merchant Marine in 2014 acquiring the gas carrier business which at the time was operating under long-term contracts with the Korea Gas Corporation (KOGAS). With IMM's investment, the company has expanded its operations.
Hyundai LNG Shipping currently operates a fleet of 16 LNG carriers as well as six LPG carriers. It is building additional vessels to service expanded business relationships with Petronas.
Earlier in 2023, it took delivery of three 86,000 CBM very large gas carriers built by Hyundai Samho Heavy Industries and is scheduled to introduce an advanced 91,000 CBM gas carrier equipped with dual fuel engines.
The company is expanding its capabilities to LPG transportation and in January 2023, won the bid to operate an LNG bunkering vessel for Korea LNG Bunkering (KOLB).
The Ministry of Oceans and Fisheries is reported to be considering moving to block the foreign sale of Hyundai LNG Shipping. This comes after reports that the Korea Development Bank and the Korea Ocean Business Corp, currently the controlling investors in HMM, proposed recombining the two shipping companies in late 2022.
https://www.shippingazette.com/menu.asp?encode=eng
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