Koreans develop LNG containment system

Korea Gas Corporation and the country’s big three shipbuilders, namely Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, have jointly developed a LNG storage tank system.

South Korean shipbuilders, which dominate the LNG carrier newbuilding market, have to date paid huge royalties to France’s GTT for their membrane LNG containment technology. It is estimated that South Korean shipbuilders have paid $10m in royalties to GTT for each LNG carrier with a claimed total royalty payment so far of $1.4bn.

Korea Gas Corporation gas plant project head Yang Young-myeong said, “Our new system is stronger against heat shock caused by the difference of temperature, and construction time and cost is about 10% less than GTT’s system.”

Nevertheless, it is worried that the new technology could fail in commercialization.

An official said, “While newbuilding orders drought is being prolonged, if new orders resume, foreign shipowners are likely to avoid new technology of which safety is not tested and measures should follow to prevent it.”