For the first time in Korea, an LNG tugboat started to be built. 

It gets attention as being the first eco-boat in Korea replacing the existing diesel tugboats. 

A tugboat is a ship helping large ships to berth or leave a dock by pushing or pulling them when they enter or leave a port. 

Korea Gas Shipping was selected as a project operator last September from the Incheon Port Authority that was commissioned by the Ministry of Oceans and Fisheries for management of the “Worn-out LNG Fuel Shift Project.” 

In March 2020, the company signed a contract to build a ship with Incheon’s DH Shipbuilding. 

The company plans to start commercial operations in the first half 2021. Only about 10 LNG tugboats are currently in operation worldwide. 

A Korean ship design company, KMS participated in the building of the tugboat of Korea Gas Shipping, and Hyundai Heavy Industries’ “Powerful Engine” was adopted instead of the Japanese engine used for most tug boats. 

The project sharply contributes to the localization of parts including Donghwa Entec’s LNG fuel supply device. 

Korean parts suppliers and shipbuilders participating in the shipbuilding process can offer higher technological capabilities for LNG small boats building including tugboats, which can help their sales abroad. 

The LNG tugboat is a 5000 horsepower ship and the shipbuilding cost is KRW 9 billion, which is 60% more expensive than diesel tug boats in the same class. 

The Ministry of Oceans and Fisheries supports about 20% of the total cost of the project, that is KRW 1.7 billion to distribute eco-ships (MOF: KRW 1.4 billion, and IPA: KRW 300 million), but this costs  more than building the same class of existing tug boats. 

The building of the LNG tugboat building this time seems to be a yardstick for LNG small boats building and navigation.

Even through LNG tug boats are eco-ships that are actively supported by the MOF and Korea Gas Corporation, the high cost and no experience of operating LNG tugboats can be a reason why most tugboat companies are reluctant to order the ships to be built. 

The LNG tugboat is a project to proactively copes with the exhaust gas regulation consolidation policy. 

LNG is known to reduce 85% of NOx, 99% of Sox, 25% of CO2, and 98% of fine dust, compared to existing diesel tugboats. 

Source: Energy Newspaper (http://www.energy-news.co.kr)