Improving Liquefied Natural Gas Bunkering in Korea through the Chinese and Japanese Experiences

Yu Yong Ung, Park Sung Ho, Jung Dong Ho and Lee Chang Hee
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Yu Yong Ung: College of Maritime Sciences, Korea Maritime & Ocean University, Busan 49112, Korea
Park Sung Ho: College of Maritime Sciences, Korea Maritime & Ocean University, Busan 49112, Korea
Jung Dong Ho: Offshore Platform Research Division, Korea Research Institute of Ship and Ocean Engineering, KRISO, Daejeon 34103, Korea
Lee Chang Hee: College of Maritime Sciences, Korea Maritime & Ocean University, Busan 49112, Korea

Sustainability, 2020, vol. 12, issue 22, 1-15

Abstract: The International Maritime Organization has strengthened global environmental regulations related to sulfur and nitrogen oxides contained in ship fuel oil since the beginning of 2020. One strategy to comply with the regulations is to fuel ships with liquefied natural gas (LNG) rather than with traditional heavy fuel oil. China and Japan are both developing a business structure for the bunkering of LNG through public–private partnerships to expand their leadership in the field in Northeast Asia and secure a competitive advantage. Compared to China and Japan, Korea has relatively inadequate laws, policy support, and best practices for safe and efficient LNG bunkering for ships. This article provides a comprehensive overview of the LNG bunkering regulation systems in China and Japan and addresses how these systems can be mirrored by Korea to improve the Korean system. It compares the legislative and normative rules of China and Japan regarding the complex global scenario of maritime transportation. The results show that Korea must revise its guidelines and create the advanced institutional framework required for the LNG bunkering market to support an eco-friendly shipping industry and maintain a competitive edge against China and Japan.

Keywords: LNG bunkering business; environmental regulation; IMO 2020; policy support; emission control area (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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