Cargo Vessels Also Permitted to Supply Eco-Friendly Fuels Such as LNG and Ammonia
Amendment to the Enforcement Decree of the Port Transport Business Act Passed at Cabinet Meeting
Consideration Given to Early Market Conditions Lacking Sufficient Bunkering Vessels
In order to improve the entry conditions for the early market, where there are not enough dedicated vessels to supply eco-friendly ship fuel, the government has decided to temporarily allow existing cargo carriers to conduct eco-friendly fuel bunkering (fuel supply), provided they meet safety standards.
The Ministry of Oceans and Fisheries announced on the 22nd that the partial amendment to the Enforcement Decree of the Port Transport Business Act, which includes these provisions, was passed at the Cabinet meeting.
Until dedicated supply vessels for eco-friendly ships powered by liquefied natural gas (LNG), methanol, and ammonia are sufficiently secured, cargo vessels used in maritime freight transport businesses will be allowed to serve as eco-friendly fuel supply ships on a temporary basis.
An official from the Ministry of Oceans and Fisheries said, "Currently, there are only two LNG bunkering vessels—dedicated ships that supply fuel to LNG-powered ships—in Korea, and there are no methanol or ammonia bunkering ships. Taking this situation into account, the amendment allows existing cargo carriers, which have been supplying LNG, methanol, and ammonia to onshore facilities rather than ships, to also participate in bunkering (fuel supply business)."
This amendment was promoted both to establish a safe supply foundation for eco-friendly ship fuels, in line with the shipping industry's transition to cleaner energy, and to improve the entry environment for the early market, where there are not enough dedicated supply vessels.
The ship fuel supply business has been subdivided according to the type of supply fuel into "eco-friendly ship fuel supply business" and "general ship fuel supply business," with the new category of eco-friendly ship fuel supply business newly established. In addition, registration standards for the eco-friendly ship fuel supply business have been set so that ships supplying these fuels must be dedicated vessels equipped with structures and safety facilities suitable for the characteristics of the fuel.
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Kim Hyejeong, Director General for Shipping and Logistics at the Ministry of Oceans and Fisheries, said, "With this amendment to the Enforcement Decree, we have established registration standards tailored to the characteristics of eco-friendly ship fuels, and also revised the system to flexibly utilize existing eco-friendly fuel carriers given the shortage of dedicated supply ships in the early market. As ship fuels continue to diversify, we will build a stable supply chain to further strengthen the competitiveness of our ports."
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