Key facts
- Hahn & Co. plans to consolidate LNG carrier fleets of SK Shipping and H-Line Shipping.
- SK Shipping will acquire 16 LNG carriers from H-Line Shipping.
- The deal involves an exchange of 12 tankers and approximately $300 million in cash from SK Shipping to H-Line.
- Upon completion, SK Shipping will operate 32 LNG carriers and 14 LPG vessels.
- The move aims to establish Asia's largest and the world's third-largest LNG carrier operator.
South Korean private equity firm Hahn & Co. is set to create Asia's largest and the world's third-largest operator of liquefied natural gas (LNG) carriers through a significant fleet reshuffle between its shipping companies, SK Shipping and H-Line Shipping. The agreement, announced Thursday, will see SK Shipping receive 16 LNG carriers and their associated long-term contracts from H-Line Shipping. In return, SK Shipping will transfer 12 tankers, long-term contracts, and approximately $300 million in cash to H-Line.
Following the transaction, SK Shipping is expected to manage a fleet of 32 LNG carriers and 14 liquefied petroleum gas (LPG) vessels. H-Line Shipping, meanwhile, will pivot to focus primarily on tanker and bulk shipping operations. Hahn & Co. established H-Line in 2014 and acquired a majority stake in SK Shipping in 2018, steering it towards long-term contract-based LNG and LPG operations.
This strategic move by Hahn & Co. occurs as South Korea, the third-largest LNG importer globally, navigates rising LNG demand amidst geopolitical uncertainties. Shell's annual LNG Outlook 2026 projects a 65% increase in global LNG demand by 2050 from 2025 levels, reaching nearly 700 million tons annually, despite current trade slowdowns due to the Strait of Hormuz crisis.