South Korea’s trading company POSCO International has completed the construction of the first non-state-owned liquefied natural gas (LNG) terminal at the country’s Gwangyang port, which is meant to increase energy security for the East Asian country.
The first terminal will have a total LNG storage capacity of 930,000 cbm in six tanks, paired with port facilities covering 180,000 cbm. The large-scale infrastructure construction project involved investing KRW 1.45 trillion (approximately $1.048 trillion) over more than two decades since the construction started in 2002, with the first tank becoming operational three years later.
In addition to supplying natural gas for power generation or processes by key national industries, the terminal will offer services such as unloading, storing, vaporizing, and transmitting natural gas directly imported by users.
Choi Nam-ho , South Korea’s Second Vice Minister of Trade, Industry, and Energy, noted: “Gwangyang’s first LNG terminal has contributed to national economic development and energy security since it was the first private company in Korea to begin commercial operation in 2005.
“ In a situation where the uncertainty of corporate management is increasing due to the instability of international energy supply and demand, the government will mobilize all available means to minimize the impact on the industry.”
The construction of the second LNG terminal, in which KRW 930 billion, or around $640 billion, will be invested to build two 200,000-cbm LNG tanks, started last year. POSCO intends to secure a total LNG storage capacity of 1.33 million cbm by 2026 when the second terminal is expected to be completed. According to the firm, this quantity is sufficient to cover the country’s heating needs for 40 days.
Alongside renting the existing LNG storage tanks, the firm plans to support domestic and international industries by developing related services, such as LNG ship commissioning and bunkering, and lay the foundation for promoting blue hydrogen in the future.
POSCO International President Lee Kye-in said: “I would like to thank all executives and employees and on-site workers who have realized a safe workplace without a single major accident since the start of terminal construction in 2002.
“ Going forward, we will ensure a stable supply of domestic energy and steadily strengthen our competitiveness in the global energy market through digital transformation that automates and optimizes the operation management of the Gwangyang LNG Terminal.”
Earlier this year, POSCO International, its parent company POSCO Holding, and UAE’s Abu Dhabi National Oil Company (ADNOC) signed a deal to collaborate on clean hydrogen production.