SK Shipping Set to Dominate Asia's LNG Market

South Korean shipping company SK Shipping is set to become Asia's largest liquefied natural gas (LNG) carrier operator, thanks to a deal with its sister company H-Line Shipping. Under the agreement, SK Shipping will receive 16 LNG vessels and related long-term contracts from H-Line Shipping in exchange for 12 tankers, long-term contracts, and $300 million in cash.

The deal is expected to improve scale and operating efficiencies at both companies and position K-LNG, as the rebranded company is set to be called, to benefit from growing LNG demand. After the transaction, SK Shipping will operate 32 LNG carriers and 14 liquefied petroleum gas (LPG) vessels.

The reshuffle would make SK Shipping the third-largest LNG carrier operator globally, surpassing its current position as one of the largest. Hahn & Co., the South Korean private equity firm that controls both companies, plans to rebrand H-Line Shipping into a tanker and bulk shipping-focused operator following the asset swap.