Posco Daewoo, PetroleumBrunei Sign LNG MoU

Posco Daewoo and PetroleumBrunei November 28 signed a memorandum of understanding to cooperate in LNG value-chain development. 

As per the MoU, the companies will explore potential cooperation in joint exploration and production for upstream assets within and outside of Brunei as well as deep sea fields currently developed by Posco Daewoo. They will also jointly assess investment opportunities for infrastructure assets including LNG liquefaction and regasification terminals and bunkering, as well as LNG supply. 

As coal is being replaced by LNG, with its low carbon dioxide emission, the growth rate of the clean energy consumption is expected to top among other fossil fuels, Posco Daewoo said, adding it is forecasted that LNG demand will be strongly driven by Asia-Pacific region, particularly in China and India. 

“Therefore, this MoU is seen as a strategic move which targets the fast-growing Asia-Pacific market, including Brunei and Korea, with many opportunities to explore for LNG infrastructure and trading businesses such as LNG receiving terminals and bunkering,” it said. 

Posco Daewoo also said that, on behalf of the Posco group, it will take the lead on LNG procurement for the group’s captive demand, LNG trading business and associated international infrastructure developments. “Posco Daewoo hopes that this strategic cooperation with PetroleumBrunei will help the company in implementing its dedicated role for the group,” it added.