(1) Reasons for Proposal

In accordance with the amendment to the City Gas Business Act (Act No. 16937, promulgated on Feb. 4, 2020) with newly inserted provisions on businesses dealing with natural gas used in ships to promote the liquefied natural gas bunkering market, this Decree aims to provide detailed provisions delegated to Presidential Decree under the Act such as criteria for registering businesses dealing with natural gas used in ships and method of disposing of such gas.

(2) Major Provisions

A. Registering Businesses Dealing with Natural Gas Used in Ships (Articles 6-7, 6-8)

Prescribe criteria for registering businesses dealing with natural gas used in ships such as those regarding facilities such as storage tanks and those regarding capital above a certain amount; and prescribe matters which, after registration, are subject to re-registration in case of changes such as change in capacity of natural gas storage facility.

B. Registration of Natural Gas Trade Business (Articles 3, 6-9)

Prescribe that in cases where persons engaging in business of dealing with natural gas used in ships that directly import natural gas, such persons shall be equipped with storage facilities above a certain capacity; and prescribe matters which, after registration, are subject to re-registration in case of changes such as the capacity of a natural gas storage facility.

C. Delivery of Remaining Natural Gas in Ships (Article 6-10)

Prescribe those able to deliver remaining natural gas in ships which passed the temporary navigation test to ship owners without registering the business of dealing with natural gas used in ships.

D. Disposal of Natural Gas in Ships such as Boil Off Gas (Articles 6-11, 6-12)

Prescribe those subject to the exemption allowing for boil off gas to be disposed of to third parties and the methods for doing so; and prescribe provisions allowing for an exemption whereby natural gas may be disposed of to domestic third parties in cases where normal operations are impossible due to closure, bankruptcy, etc., or in cases where doing so is recognized as necessary to achieve efficient management of gas manufacturing, piping, and use facilities.

E. Reporting on Current Status such as Supply Records (Article 23)

Prescribe that persons engaging in business of dealing with natural gas used in ships shall report its supply records and current status, etc., for ascertaining the current status of the market for natural gas used in ships.