The state-run Korea Gas Corp. (KOGAS) said it will invest 1 trillion won (US$895 million) by 2025 to establish infrastructure for liquefied natural gas (LNG) powered vessels and trucks, as well as hydrogen-fueled vehicles.
KOGAS, the world’s second-largest LNG importer, said it will consult with the government to expand the use of LNG for ship fuel and increase subsidies for eco-friendly vessels to get prepared for a stricter global sulfur cap on bunkers, set to be enforced in 2020.
The gas company said it will build a new bunkering facility in the southeastern region in 2022 to deal with a growing number of LNG-powered ships, and expand LNG charging stations in major ports and cargo terminals by 2020.
The new investment plan was set to meet the rising demand for LNG bunkering, which is expected to increase from 310,000 tons in 2022 to 1.36 million tons in 2030 under the tougher environmental regulations, the company said.
Bunkering is the process of supplying fuel to ships for their own use, which requires the utmost care to prevent any kind of fire or oil spill.
The firm will also develop high-powered trucks running on natural gas as alternatives for diesel trucks to reduce carbon emissions.
It plans to join hands with Daewoo Tata, the nation’s second-largest commercial vehicle manufacturer, to develop a 400 horsepower truck, with a goal of beginning its commercialization in 2021.
In addition, KOGAS aims to expand infrastructure for hydrogen-fuel vehicles in collaboration with local automakers and create a hydrogen complex in the southeastern city of Daegu to carry out tests, distribution and other tasks.
To boost sales of hydrogen vehicles, the firm said it will establish about 100 hydrogen charging stations and distribution centers by 2022.