South Korea’s trading company POSCO International has signed a memorandum of understanding (MoU) with Korea Southern Power (KOSPO) to promote the domestic LNG bunkering business.
The MoU is expected to enable Korea Southern Power to utilize POSCO International’s domestic LNG bunkering services starting in 2027.
Korea Southern Power, which introduced LNG-powered vessels Nambu 1 and Nambu 2 in 2023, has been sourcing fuel from overseas, including Singapore, due to the low competitiveness of domestic LNG bunkering.
Therefore, “unnecessary detours and time losses” underscored the need to establish a viable domestic LNG bunkering business, with a focus on full-scale commercialization and infrastructure expansion, POSCO explained.
The latest MoU was described as a leading example of public-private collaboration to drive the domestic LNG bunkering business and significantly enhance the efficiency of the energy procurement process.
In particular, this public-private collaboration is expected to serve as a crucial foundation for positioning South Korea as a global LNG bunkering hub in the era of energy transition, the partners said.
“Through this MoU, we will work closely with Korea Southern Power to set new standards for the energy industry across technology, logistics, and supply chains,” Min Chang-Kie , Head of POSCO International, stated. “We will make every effort to establish a model case for South Korea’s energy industry by ensuring an environmentally friendly supply of ship fuel and stable procurement of energy.”
Park Young-Chul , Vice President of Korea Southern Power, added: “This agreement is a meaningful achievement that extends carbon neutrality from stable power production to the fuel supply chain. We will continue to expand and strengthen collaboration beyond the boundaries of public and private sectors to achieve carbon neutrality goals.”
In 2023, POSCO International merged with POSCO Energy to secure competitiveness by vertically integrating the LNG value chain—from exploration and production to transportation, storage, and power generation.
The company claims it had established a stable procurement system via gas field operations in Myanmar and Australia, long-term contracts with North America’s Cheniere Energy, and the operation of its own LNG carrier.
The Gwangyang LNG Terminal , constructed in 2024, is undergoing large-scale investment to expand storage capacity from 930,000 to 1,330,000 cubic meters (cbm).