The Korean government will order 140 liquefied natural gas (LNG) ships, worth 1 trillion won ($880 million), from the nation’s small and midsized shipbuilders by 2025, said Korea’s press agency Yonhap.
South Korea’s Ministry of Trade, Industry, and Energy said the government will provide shipbuilders and suppliers 1.7 trillion won ($1.5 billion) in financial aid to prop up the country’s ailing shipbuilding industry.
The report quoted Yoon Sung-hyuck, chief of the Ministry of Trade, Industry and Energy’s shipbuilding and offshore plant industry division as saying that, in order to set small and midsized shipbuilders apart from their rivals from China and Japan, it is necessary for them to be first movers in the eco-friendly shipbuilding market.
There are 78 small and midsized builder companies in Korea, whose combined revenue stood at 601.2 billion won last year.
South Korea’s push for LNG Ships coincides with the global movement toward tighter emissions regulations.. The government plans to invest around $ 2.5 billion by 2025 in building up the LNG sector. The government will also invest in LNG infrastructure to develop bunkering.