The Korea Shipowners’ Association (KSA) said that a push by IMM Private Equity and IMM Investment to sell management control of Hyundai LNG Shipping to Indonesia’s Sinar Mas Group “could trigger a national energy security crisis.”
In a statement on the 26th, the association said, “Hyundai LNG Shipping is the country’s largest liquefied gas specialist carrier, owning 12 dedicated liquefied natural gas (LNG) carriers and six dedicated liquefied petroleum gas (LPG) carriers,” and stated accordingly.
The association said, “Hyundai LNG Shipping is a core energy transport carrier that has long-term transport contracts with Korea Gas Corporation (KOGAS),” adding, “If the overseas sale goes through, core energy transport assets, informational assets such as LNG transport know-how, and long-term contract transport rights with KOGAS—national assets that are hard to quantify—will flow overseas.”
The association also said, “With the LNG carriage rate by domestic-flag carriers at only 38.2% as of 2024 and projected to drop to 12% in 2029 and 0% in 2037, the overseas sale of Hyundai LNG Shipping will further accelerate Korea’s decline in LNG carriage rate.”
The association also noted that the government’s policy goals of keeping the utilization rate of domestic-flag carriers for core energy transport at 70% or higher and preventing overseas sales of vessels are squarely at odds with the overseas sale of Hyundai LNG Shipping. It added, “Hyundai LNG Shipping must remain a domestic-flag carrier.”
Source: Chosun
