POSCO International completes Korea’s first non-state-run LNG terminal
Woo-Sub Kim
Jul 09, 2024 (Gmt+09:00)
POSCO International CEO Lee Kye-in speaks at a ceremony marking the completion of Gwangyang LNG Terminal 1 POSCO International Corp., the general trading and energy exploration unit of South Korea’s steel giant POSCO Holdings Inc., said on Tuesday it has completed the construction of its liquefied natural gas terminal – the country’s first non-government-run LNG storage and regasification facility.
Gwangyang LNG Terminal 1, composed of six storage tanks, boasts a storage capacity of 930,000 kiloliters and a port facility that can dock 180,000-cubic-meter class LNG carriers.
The company has spent 1.05 trillion won ($759 million) to build Terminal 1 in Gwangyang, about 300 km south of Seoul, since 2002. The first tank of the terminal began operations in 2005.
An LNG terminal is a facility that receives, stores and regasifies LNG imported from other countries and then sends it to clients through a pipeline network.
POSCO International executives and government officials pose for a photo at the ceremony to mark the completion of Gwangyang LNG Terminal 1 The company said the interiors of tanks 5 and 6 are made of high manganese steel that can withstand cryogenic temperatures below minus 162 degrees Celsius, making them suitable for storing natural gas in a liquid state.
The manganese steel was manufactured by the conglomerate’s steelmaking affiliate POSCO.
POSCO International said Terminal 1 will offer comprehensive services from offloading and storage to regasifying natural gas imported by POSCO Group and its clients, including S-Oil Corp. and SK E&S Co.
CONSTRUCTION OF TERMINAL 2 UNDERWAY
POSCO International is also building a second LNG terminal near Terminal 1.
Major facilities at Gwangyang LNG Terminal 1 built by POSCO International Gwangyang Terminal 2, composed of two storage tanks with a capacity of 200,000 kiloliters each, broke ground in January last year and is slated for completion by 2026.
Once construction of the second terminal worth 930 billion won is completed, POSCO International will have a total storage capacity of 1.33 million kiloliters, sufficient to heat all homes in the country for 40 days.
Choe Nam-ho, second vice minister of trade, industry and energy, said at a ceremony in Gwangyang that “LNG Terminal 1, which is Korea’s first private LNG storage facility, will play a critical role in the country’s energy security.”
Gwangyang LNG Terminal 1 LNG VALUE CHAIN
With the two LNG terminal facilities, POSCO International aims to strengthen its LNG value chain, particularly in the liquefaction, transport, storage and trading of natural gas.
In addition to the LNG tank lease business, the company is considering expanding into the eco-friendly blue hydrogen business.
“Our goal is to ensure a stable supply of energy in Korea and strengthen our competitiveness in the global energy market through automated and optimal operation of the LNG terminals,” said POSCO International Chief Executive Lee Kye-in.
Choe Nam-ho, second vice minister of trade, industry and energy, gives a congratulatory message at the completion ceremony for POSCO International's Gwangyang LNG Terminal 1 The terminal completion ceremony was attended by some 100 dignitaries, including SK E&S CEO Choo Hyeong-wook, HD Hyundai Heavy Industries Co. CEO Lee Sang-kyun, state-run Korea Gas Corp. Vice President Kim Hwan-yong and government officials.
In 2022, POSCO International absorbed its affiliate POSCO Energy Co., which managed the operation of LNG storage facilities, to enhance its presence in the global LNG business market.
Previously, POSCO International had been involved only in importing LNG, while POSCO Energy operated LNG storage facilities.
Write to Woo-Sub Kim at duter@hankyung.com In-Soo Nam edited this article.