SK Shipping and H-Line Merge to Create Giant LNG Carrier Operator

South Korean shipping companies SK Shipping Co. and H-Line Shipping Co., both owned by private equity firm Hahn & Co., are merging to create a giant in liquefied natural gas (LNG) carriers.

SK Shipping will receive 16 LNG vessels and their long-term contracts from H-Line, while giving up 12 tankers, their contracts, and approximately $300 million in cash. The deal will turn SK into the world's third-largest operator of LNG carriers, according to Hahn & Co.

The swap is part of a years-long effort to reshape Korean shipping and comes as conflict in the Persian Gulf disrupts the energy trade.