The International Maritime Organization’s (IMO’s) 2020 reduction in permitted sulphuric acid compound concentration in marine fuel emissions from 3.5% to less than 0.5% is expected to intensify demand for LNG bunkering, which converts marine fuel to LNG. Accordingly, KOGAS has laid the legal foundations and policies for the use of LNG marine fuels, and is striving to revitalize the LNG bunkering business by establishing a bunkering subsidiary to expand the supply of LNG-powered vessels, and is building bunkering shipping facilities in the 5th LNG terminal in Dangjin. As a result of these efforts, we began LNG bunkering business with the global energy giant Shell at the end of 2019. This project has provided the opportunity for KOGAS to lay the groundwork for a bridgehead for the transport fuel conversion business.

KOGAS is actively promoting the gas cooling supply business to alleviate the problem of seasonal power demand spikes. Since gas air conditioners use gas instead of electricity as a heat source, they can contribute to the stabilization of power supply and demand by replacing summer cooling and winter heating electricity demands with gas. The government and KOGAS are currently driving the continuous expansion of gas cooling supply through various policies such as installation subsidies, mandatory gas cooling in public institutions, and enticement to install gas cooling in large buildings.