Hahn & Co. Creates LNG Giant with Massive Tanker Swap

South Korean shipping companies SK Shipping and H-Line Shipping have announced a major deal that will create one of the world's largest operators of liquefied natural gas (LNG) carriers. The two companies, both owned by private equity firm Hahn & Co., are swapping tankers and contracts in a move that will see SK Shipping become the third-largest operator of LNG carriers globally.

The deal involves SK Shipping receiving 16 LNG vessels and their long-term contracts from H-Line in exchange for 12 tankers, their contracts, and approximately US$300 million in cash. This is part of a years-long effort to reshape South Korean shipping and comes at a time when conflict in the Persian Gulf has disrupted the energy trade.

Hahn & Co. created H-Line by acquiring Hanjin Shipping's long-term dry-bulk operations in 2014, followed by Hyundai Merchant Marine's long-term dry-bulk business in 2016. In 2018, the firm acquired about 80% of SK Shipping from SK Group and shifted the company towards vessels backed by secured, long-term contracts.