Korea Lines has completed a planned spin-off of its LNG shipping business into a separate entity. Korea LNG Shipping, the new firm, has ownership of Korea Lines' 11 LNG carriers, all of which are under term charters with South Korean state-controlled importer Kogas. Four of these vessels are owned as part of a consortium.
Korea LNG Shipping is also set to take delivery of a further two LNG carriers from South Korean builder Hyundai Samho Heavy Industries in 2022.
The division of Korea Lines' business was implemented in an attempt to make LNG transportation and bulk carrier operations more efficient. The shipowner's remaining fleet consists of 23 bulk carriers, three tankers and a single ferry.
Korea Lines is the second shipowner to announce a spin-off of its LNG business in recent years, with Bermuda-based Golar announcing plans to separate its LNG and power generation operations last year, although the owner has yet to implement this decision.
