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South Korean shipbuilding company Hanjin Heavy Industries & Construction Co. LTD (HHIC) has signed a contract with Japan's Nippon Yusen Kaisha (NYK Line) to build a 5,100 cubic metre LNG bunkering vessel.

In a statement, HHIC said that the LNG bunkering vessel is set to be the first of its type as it would be used for ship-to-ship transfers of LNG fuel at sea.

The company explained that, in general, fuel is supplied to a ship via land-based LNG storage tanks or an offshore LNG receiving terminal. However, if an LNG bunkering vessel is used, LNG fuel can be supplied at sea.

Once completed, the new LNG bunkering vessel will be capable of fuelling 5,100 cubic metres of LNG at a time. With propellers and auxiliary propellers (two units each), HHIC said the vessel will have "great maneuverability and berthing capacity" and will be able to transfer LNG to another ship at sea without a separate berthing support ship. In terms of storage, it will have two independent pressurized LNG tanks. In addition, operating efficiency will be maximized with the vessel's LNG/MGO dual-fuel set up.

"The LNG-fuelled vessel can save fuel expenses by 20-50 percent, compared to conventional oil-fuelled ships. In addition, it can dramatically reduced greenhouse gas emissions such as exhaust fumes and sulpur oxides. Therefore, the environment-friendly and economically efficient LNG-fueled ships have become more popular," HHIC said.

"According to industry reports, the LNG price has been stable due to stricter restrictions on greenhouse gas emissions by the International Maritime Organization (IMO) and the increase in the production of natural gases in the North America and Australia. Therefore, it appears that LNG-fuelled vessels and the bunkering market would change the paradigm of the global shipbuilding industry," HHIC added.

An unnamed official from HHIC is quoted as saying: "Based on our success in the bid of the world’s first LNG bunkering vessel, we are going to keep making our best efforts in the construction of high-technology and high-value vessels by securing technical superiority."