LNG tank made in South Korea: Lawsuits spread over “KC-1”!
– Litigation between Korea Gas Corporation, SK Shipping, and Samsung Heavy Industries –
Chosun Online Report from Chosun Ilbo article
Korean-made LNG tanker inoperable:
“SK Serenity” and “SK Spica” are still anchored off Geoje Island in Gyeongsangnam-do.
The two companies have adopted Korea’s unique LNG cargo tank, ‘KC-1’.
Defective Korean-made “KC-1”:
It is an LNG tanker built in Korea in 2018. However, it has been out of service for six years.
When an LNG tanker left port, a defect called a cold spot (freezing phenomenon) occurred.
“SK Serenity” and “SK Spica” have repaired “KC-1” several times, but the problem cannot be solved.
“KC-1” Lawsuits Frequent:
A long-running lawsuit has been filed over the design, construction and operation of the KC-1.
There were many lawsuits among the shipper Korea Gas Corporation, the operator SK Shipping, and the builder Samsung Heavy Industries.
Since 2019, they have each claimed “design defects, construction defects, and breach of contract.”
All three companies suffered losses of over 100 billion won and are still increasing.
Confidence in Korean shipbuilding technology has declined in the global LNG tanker market.
Obligation to pay technical fees for LNG tank “KC-1”:
National Gas Corporation and three Korean shipbuilding companies have started a national project for the domestic production of tanks. In 2015, they succeeded in jointly developing the KC-1.
However, South Korea will pay GTT a technology usage fee of “10 billion won per LNG tanker.”
In the past year, 120 LNG tankers were built.
On the other hand, South Korea paid 1.7 trillion won in technology usage fees to GTT.
The more the Korean shipbuilding industry booms, the more technology usage fees will be paid.
https://www.chosunonline.com/site/data/html_dir/2023/06/02/2023060280151.html