(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 Rule aims to provide detailed provisions delegated to the Ordinance of the Ministry of Trade, Industry and Energy under the Act such as the method of registering businesses dealing with natural gas used in ships, procedures for commencing, suspending and closing such businesses, and method of reporting trade of natural gas used in ships, etc.

(2) Major Provisions

A. Application for Registration of Businesses Dealing with Natural Gas Used in Ships (Article 10-16)

Prescribe that a person who wishes to engage in the business of dealing with natural gas used in ships shall submit an application to engage in such business with relevant documents such as business plans attached to the Minister of Trade, Industry and Energy.

B. Reporting Commencement, Suspension and Closure of Business (Article 10-17)

Prescribe that in cases where a person engaging in the business of dealing with natural gas used in ships reports the commencement, suspension or closure of business, and such report shall be submitted to the Minister of Trade, Industry and Energy within a certain period from the date the grounds giving rise to the report arose.

C. Reporting Trade of Natural Gas Used in Ships, etc. (Articles 10-18, 10-19)

Prescribe that in cases where a person engaging in business of dealing with natural gas used in ships enters into contracts for import, export or transport of natural gas, such a person shall submit a report on natural gas contracts within a certain period from the date such contracts were entered into to the Minister of Trade, Industry and Energy and prescribe that the quantity and timing, etc., of import and export shall be reported for a certain period prior to entering into import and export contracts to the Minister of Trade, Industry and Energy.

D. Criteria for Dealing with Violations Regarding Registration of Businesses Dealing with Natural Gas Used in Ships (Article 10-20)

Establish criteria for dealing with violations of registration criteria by persons engaging in business of dealing with natural gas used in ships such as violations of criteria on natural gas business facilities, etc., according to each act of violation.

E. Facility Criteria for Gas Supply Facilities of Businesses Dealing with Natural Gas Used in Ships and Technical Criteria (Article 23)

Prescribe detailed matters such as facility criteria, technical criteria, test criteria, etc., to be applied in cases where ships are charged with natural gas using tanks fixed to vehicles.

F. Modification of Other Relevant Provisions (Articles 2, 62-7)

Delete provisions which overlap with newly inserted provisions on businesses dealing with natural gas used in ships such as existing provisions on liquefied city gas and ship charging business, etc., and prescribe matters to be included in gas supply facility construction plans by persons engaging in business of dealing with natural gas used in ships wishing to share the use of gas supply facilities.