POSCO INTERNATIONAL : Takes on Dangjin LNG Terminal Project, Broadening its Reach in the Energy Sector

POSCO INTERNATIONAL Takes on Dangjin LNG Terminal Project, Broadening its Reach in the Energy Sector

2023.05.31

POSCO INTERNATIONAL Takes on Dangjin LNG Terminal Project,

Broadening its Reach in the Energy Sector

- Signed a contract with local governments and businesses for the 'Local Government Business Agreement for Dangjin LNG Terminal' on the 31st.

- Aims to construct two LNG tanks with a capacity of 270,000 ㎘ each and accompanying terminal facilities by 2027.

- Bolstering LNG storage infrastructure, following the Gwangyang Terminal, to contribute to national energy security.

POSCO INTERNATIONAL is bolstering its stance as a leading company in the domestic liquefied natural gas (LNG) business through the launch of the Dangjin LNG Terminal project.

POSCO INTERNATIONAL, led by Vice President Jeong Tak, held a 'ceremony for business agreement with the local government on Dangjin LNG Terminal' at the Chungnam Provincial Office on May 31. The ceremony was attended by dignitaries including Governor Kim Tae-Heum of Chungnam Province, Mayor Oh Seong-Hwan of Dangjin, Vice President Jeong Tak of POSCO INTERNATIONAL, and CEO Yoon Chun-Sung of LX International, among others.

Through this agreement, POSCO INTERNATIONAL and LX International have committed to successfully completing the construction of two storage tanks and accompanying facilities at the Dangjin LNG Terminal. This development will allow POSCO INTERNATIONAL to stably secure its infrastructure assets in the midstream (LNG storage) sector, which is a part of the LNG value chain.

The Dangjin LNG Terminal is set to occupy about a 198,347-square-meter space at Godae Pier in Dangjin Port, located in Songak Township, Dangjin City. The project encompasses the construction of two LNG storage tanks, each with a capacity of 270,000㎘, two vaporizers capable of processing 200 tons per hour, liquefied petroleum gas (LPG) heating facilities, and Berth No.1 dedicated to LNG vessels.

The Dangjin LNG Terminal is set for completion by 2027. Upon becoming operational, it is expected to serve as a principal LNG terminal in the West Sea region, with the capacity to handle 3.5 million tons of LNG each year.

The expansion of this LNG terminal is also expected to boost the local economy. POSCO INTERNATIONAL projects that during the construction phase, up to 300 daily jobs in the construction sector will be created.

Earlier this year, the company consolidated its position as an 'eco-friendly integrated corporation' by merging with POSCO Energy. It is working towards encompassing the complete LNG value chain, spanning from exploration and production to storage and power generation.

In 2005, the company became the first private company in Korea to initiate the commercial operation of the Gwangyang LNG Terminal. Currently, the company oversees the operation of the 1st to 5th LNG tanks at this terminal, possessing a total capacity of 730,000 ㎘. The company is currently constructing an additional 200,000 ㎘ tank, Tank No.6, with a targeted completion date in the first half of 2024. Further enhancing its capacity, the company initiated a project in January this year to add Tank No.7 and 8, each with a capacity of 200,000 ㎘, in the second terminal site already established at the Gwangyang LNG Terminal.

Upon the completion of the ongoing LNG tank expansions in Gwangyang and Dangjin by 2027, POSCO INTERNATIONAL's LNG storage capacity will experience a significant increase. It is projected to rise from the current 730,000 ㎘ to a robust 1,870,000 ㎘, marking an approximately 2.6-fold expansion.

The increased capacity for LNG storage is anticipated to have a positive impact on downstream gas operations. This expansion not only ensures a stable supply of LNG but also enhances associated terminal operations like sea trial of vessels and bunkering, reinforcing its role as a hub terminal for LNG in Northeast Asia.

At the agreement ceremony, Vice President Jeong Tak of POSCO INTERNATIONAL stated, "The Dangjin LNG Terminal will play a pivotal role in broadening the scope of our energy business value chain. Amid the recent crisis in the global energy supply network, we aim to transform this terminal into a community asset that also contributes to national energy security."

In a related move this past May, POSCO INTERNATIONAL bolstered its LNG operations by securing a 174K-cubic-meter (CBM) LNG carrier to its fleet from H-Line Shipping, a domestic shipping company specializing in dedicated service routes. The new LNG carrier to be delivered is earmarked to transport approximately 400,000 tons of North American shale gas for both domestic supply and trading activities over a 20-year span, from 2026 to 2046.

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