Hahn LNG fleet reaches 16 vessels with SK Shipping acquisition

Seoul-based private equity firm Hahn & Co has acquired a 90% stake in SK Shipping, South Korea’s fourth-largest shipping company, for a reported US$1.35Bn.

The shipowner, a subsidiary of energy conglomerate SK Group, is involved in the bulk carrier, petroleum product tanker, crude oil tanker and LNG carrier sectors. SK Shipping has struggled financially in recent years, due, not least, to the poor freight returns pertaining in the crude oil sector.

Hahn & Co already owns H-Line Shipping, another South Korean owner involved in the dry bulk and liquefied gas sectors. H-Line was established in 2014 and its fleet includes four LNG carriers built between 1995 and 2000 and formerly owned by Hanjin Shipping.

Hahn & Co now controls a fleet of 16 LNG carriers, thanks to the 12 gas ships SK Shipping is bringing to the amalgamation. Twelve ships in the 16-vessel fleet are serving on long-term charters to Korea Gas Corp (Kogas), carrying LNG imports to South Korea.

The SK Shipping gas fleet includes 10 operational ships and a pair of 180,000-m³ vessels under construction at Hyundai Heavy Industries (HHI) for delivery in 2019. On completion, the duo will go on charter to SK E&S for lifting cargoes from the Freeport LNG terminal in Texas.

The in-service SK fleet includes two notable pairs of recently completed LNG carriers. All four were built at Samsung Heavy Industries (SHI) and all are employed loading cargoes at the Sabine Pass terminal in Louisiana under long-term charters.

SK Audace and SK Resolute are 180,000-m³ ships built for an SK Shipping/Marubeni joint venture and charter to Total, while SK Serenity and SK Spica are 174,000-m³ ships on charter to Kogas.

The latter pair are the first LNG carriers to feature the KC-1 membrane cargo containment system. The technology was developed by Kogas in tandem with South Korea’s three leading LNG carrier builders – HHI, SHI and Daewoo Shipbuilding & Marine Engineering.

SK Audace was the first LNG carrier powered by X-DF two-stroke, dual-fuel engines from Winterthur Gas & Diesel to enter service.     

SK Shipping also operates an LPG carrier fleet, ranging from six fully refrigerated very large gas carriers of 75,000-85,000 m³ down to a number of fully pressurised ships of 1,500-6,500 m³ engaged in southeast Asia trades.

H-Line Shipping made the news in July 2018 when it ordered a pair of 180,000-dwt, LNG-powered bulk carriers at HHI. Following delivery in 2020, the dual-fuel bulkers will work for South Korea’s steel maker Posco under a long-term charter.