GTT, the makers of the world’s dominant LNG containment system for ships, is facing an investigation in South Korea.
Seoul’s Fair Trade Commission is looking at GTT’s licence agreements with yards including Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries and Hyundai Heavy Industries to see if they are unfair. The watchdog is assessing whether the contracts GTT makes the yards sign contravene the nation’s fair trade act.
Typically, Splash understands a Korean yard will pay GTT approximately $10m for each LNG ship it constructs.
GTT’s membrane containment system has a very dominant position among LNG carriers, accounting for around 85% of all newbuilds. Korea’s big yards have been working with Kogas, the nation’s gas trader, to develop a home grown alternative to GTT’s technology.
