SK Shipping to Become Asia's Largest LNG Carrier Operator After Asset Swap

South Korean shipping company SK Shipping is poised to become Asia's largest liquefied natural gas (LNG) carrier operator following an asset swap with H-Line Shipping. The deal, which will see SK Shipping receive 16 LNG vessels and related long-term contracts from H-Line Shipping in exchange for 12 tankers, long-term contracts, and around US$300 million in cash, is expected to improve scale and operating efficiencies at both companies.

The transaction will see SK Shipping operate a total of 32 LNG carriers and 14 liquefied petroleum gas vessels, making it the third-largest LNG carrier operator globally. Hahn & Co, the private equity firm that controls both SK Shipping and H-Line Shipping, plans to rebrand the company as K-LNG.

The asset swap is expected to position K-LNG to benefit from growing LNG demand. The reshuffle will also see H-Line Shipping become a tanker and bulk shipping-focused operator.