Posco International, a trading firm under Posco Group, said Sunday that it was investing around 140 billion won ($98.38 million) to triple the natural gas production of its subsidiary Senex Energy Limited in Australia by 2025.
According to the company, the investment is aimed at contributing to stabilizing energy costs in South Korea.
The price of natural gas is expected to remain high for a while from the impact of the global natural gas shortage due to Russia switching off its gas pipelines flowing into Europe.
Senex Energy Limited is an Australian natural gas producer established in 1984.
Posco International acquired the firm in April this year, now owning 50.1 percent of its shares.
With the new investment, its annual production capacity is expected to triple from the current 20 petajoules to 60 petajoules by 2025, which is equivalent to about 12 million tons of liquid natural gas.
Posco International is creating a master plan to bring a certain amount of that LNG to South Korea beginning with up to 400,000 tons per year in 2025.
“The new investment will help us elevate business profitability and contribute to energy supply at home at the same time," a Posco International official said. "We expect to further bolster our competitiveness in the global markets."