Posco International completes first Gwangyang LNG import terminal

Posco International, a unit of steel giant Posco, has completed the first Gwangyang LNG import terminal in South Korea after wrapping up work on the sixth storage tank, the company announced on July 9.

With the completion of the sixth tank, the terminal's storage capacity has reached 930,000 m³. The first storage tank's construction began in 2002 and was commissioned in 2005. The entire first Gwangyang LNG import terminal project required an investment of 1.45 trillion won ($1.2bn). The terminal supplies regasified LNG to users such as Posco, S-Oil, and SK E&S.

Posco International is also building the second Gwangyang LNG import terminal at a cost of 930bn won. This terminal will have two LNG storage tanks, each with a capacity of 220,000 m³, and will be located close to the first terminal. By 2026, when the second Gwangyang LNG terminal is completed, Posco International will have a total LNG storage capacity of 1.33mn m³.

In the future, Posco International plans to further strengthen the midstream (liquefaction, transportation, storage, and trading) sector of the LNG value chain, centred around the Gwangyang terminal. Beyond the existing LNG storage tank rental business, the company aims to support domestic and international industries by developing related businesses such as LNG ship commissioning and bunkering, and to lay the foundation for promoting a blue hydrogen business, it said.

Last month, Posco International announced that its Australian unit, Senex Energy, will invest A$650mn ($430mn) to increase gas output in Australia. Senex Energy plans to build a 60 petajoule/year production capacity by 2026. According to Posco International, 60 petajoules is enough to produce 1.2mn tonnes of LNG. Posco International will contribute A$326mn to this capital increase, based on its 50.1% stake in Senex Energy. Hancock Energy, which owns a 49.9% stake in Senex, will cover the remaining investment.