South Korean Fleet Reshuffle Creates Asia’s Largest LNG Carrier Operator

A South Korean private equity firm, Hahn & Co, is reshuffling liquefied natural gas tanker fleets of its shipping companies SK Shipping and H-Line Shipping to create Asia's largest LNG carrier operator. In a deal announced on Thursday, SK Shipping will receive 16 LNG carriers and related long-term contracts from H-Line Shipping in exchange for 12 tankers, contracts, and $300 million in cash.

Upon completion, SK Shipping will operate 32 LNG carriers and 14 LPG vessels, while H-Line Shipping will focus on tankers and bulk shipping. Hahn & Co established H-Line in 2014 by purchasing Hanjin Shipping Co.'s long-term dry-bulk operations. They acquired 80% of SK Shipping in 2018 and shifted SK Shipping's focus from speculative spot-market operations to LNG and LPG fleets backed by long-term contracts.

This major fleet reshuffle in South Korea, the world's third-largest LNG importer after China and Japan, comes as global LNG demand is expected to surge by 65% by 2050 from 2025 levels. Despite disruptions caused by geopolitical tensions, Shell, the world's biggest LNG trader, anticipates global LNG demand to reach nearly 700 million tons annually by 2050.