Posco International, a subsidiary of steel giant Posco, on Tuesday held a ground-breaking ceremony for its second liquefied natural gas terminal in Gwangyang, South Jeolla Province.
The company said the construction will accelerate its vision to become an eco-friendly company by strengthening its energy value chain.
The company plans to invest 930 billion won ($757 million) to build two 200,000-kiloliter LNG storage tanks on the site by 2025 to power Posco’s steel mills and other power generators in the neighborhood.
Adding to the first terminal, its LNG storage capacity will reach a combined 1.33 million kiloliters, which is enough gas to heat homes for the nation’s whole population for 40 days. The capacity is the largest among privately operated LNG terminals here and the 11th globally, according to the firm.
The company said the increased capacity will play a role in boosting the nation’s “energy security” as it secures a total LNG value chain from production to storage to power generation.
“The new terminal -- another growth engine for the Korean industry -- will be launched in Gwangyang, a city where Korea’s first commercial operation of LNG terminals started in 2005, along with Posco’s leap forward in the steel industry,” said Posco Holdings Chairman Choi Jeong-woo during the ceremony.
“We will strategically utilize LNG to create better value for companies and communities to continue developing.”
Posco International was relaunched as a merged entity of Posco International, formerly a trading unit, and Posco Energy early this month.
In its 2022 earnings report, the company said it posted 41 trillion won in sales and 1.17 trillion won in operating profits. It was the first time its operating profit exceeded the 1 trillion won mark.