SK Shipping Set to Dominate Asia's LNG Carrier Market
South Korean shipping companies SK Shipping and H-Line Shipping are shaking up their fleets in an asset swap deal. The move will see SK Shipping take control of 16 liquefied natural gas (LNG) vessels from H-Line Shipping, along with related long-term contracts. In exchange, SK Shipping will hand over 12 tankers, long-term contracts, and approximately $300 million in cash to its counterpart.
The deal makes SK Shipping Asia's largest LNG carrier operator, with a total of 32 LNG carriers and 14 liquefied petroleum gas (LPG) vessels under its control. H-Line Shipping will be rebranded as K-LNG following the transaction, and will focus on tanker and bulk shipping operations.
Hahn & Co., the private equity firm that controls both SK Shipping and H-Line Shipping, believes the deal will improve scale and operating efficiencies at both companies. They also see it positioning K-LNG to benefit from growing LNG demand.