HD Hyundai Global Service has announced that it has signed contracts on June 6th with Cool Company Ltd. to retrofit five LNG carriers with sub-coolers for LNG boil-off reliquefaction ("reliquefaction units"). The contract value is approximately USD 10 million per vessel. A reliquefaction unit is a device used to re-liquefy the boil off gas (BOG) generated during the operation of LNG cargo tanks, either returning the gas to the cargo tank or preventing natural evaporation using sub-cooled LNG.

When a vessel is in operation, boil off gas ("BOG") is consumed as fuel by the propulsion engine. However, without a reliquefaction unit, during periods of reduced vessel speed, during port stays, or while utilizing the vessel for floating storage, the BOG needs to be forced burned, resulting in the loss of LNG cargo and the emission of greenhouse gases, leading to environmental pollution. The utilization of a reliquefaction unit is known to be effective mainly in LNG carriers equipped with tri-fuel electric propulsion (TFDE) or two-stroke dual-fuel (DF) engines, and HD Hyundai Global Service is currently receiving inquiries from its customers for additional reliquefaction unit retrofit work similar to that being performed for CoolCo.

At the International Maritime Organization's ("IMO") 78th Marine Environment Protection Committee meeting in 2022, a correction item was adopted so that LNG carriers could deduct fuel consumption equivalent to the amount of power used in cargo reliquefaction equipment when calculating the ship's Carbon Intensity Indicator ("CII"), which has been adopted as IMO's short-term greenhouse gas measure and has been incorporated into certain international environmental regulations that tighten over time. As a leading provider in ship services industries, HD Hyundai Global Service has a long history of providing innovative solutions to meet the needs of its customers.