Russia, Korea strengthen LNG shipbuilding ties

A Korean company has received a contract to build 15 ice-breaking LNG carriers for Russia, informed the President of South Korea, Moon Jae-in, speaking at the Eastern Economic Forum in Vladivostok, on September 7.

As Mr Jae-in noted, cooperation in shipbuilding and marine logistics might become a new model for Korean-Russian economic ties and might change the map of international sea navigation, as “the development of the Zarubino port and the use of Korean shipbuilding technology could turn the Northern Sea Route into a new Silk Road for the new energy era.”

President Putin said that Russia has now opened up all opportunities for the Northern Sea Route and that it would bring a significant contribution to the development of the energy industry of Europe as well as the entire world.

Korea and Russia have demonstrated to the world a new model of cooperation, he noted, as the use of the Northern Sea Route has reduced the distance, time, plus transportation costs by a third as compared to the Southern Sea Route across the Suez Canal and the Indian Ocean.

Further, he added that the Republic of Korea has received a contract to build a large LNG-powered oil tanker for Russia.

    “The ice-breaking LNG tanker and the LNG-powered tanker will serve to boost the expansion of imports of Russian gas to other countries.”

The Republic of Korea and Russia have established a joint company and are implementing the joint Zvezda shipyard project. Thus, bilateral cooperation in shipbuilding and energy has begun and is changing the world of business.

    “Looking into the future, in the long run the improvement of intra-Korean relations will lead to the connection of gas pipelines between our countries through North Korea,” he added.