POSCO Energy Obtains First Private Qualification for Ship Natural Gas Business

[Asia Economy Reporter Hwang Yoon-joo] POSCO Energy has become the first private LNG terminal operator to receive qualification for the 'Natural Gas Business for Ships' from the Ministry of Trade, Industry and Energy.

POSCO Energy announced on the 11th that it obtained the qualification as the first private company in line with the enforcement of the amended City Gas Business Act and will begin full-scale LNG ship commissioning services targeting domestic shipbuilders.

The LNG ship commissioning business refers to a service that inspects whether LNG is stably stored and major equipment operates normally before a shipbuilder delivers an LNG vessel to the shipowner. Following the deliberation and approval of the amendment to the City Gas Business Act, which newly establishes the natural gas business for ships at the Cabinet meeting in February, POSCO Energy began preparations to acquire the qualification for the natural gas business for ships.

Subsequently, to expand the domestic LNG ship commissioning business, on June 30, POSCO Energy signed a 'Contract for LNG Ship Commissioning Services' with major domestic shipbuilders including Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries, and Hyundai Samho Heavy Industries.

With 30 to 50 LNG vessels newly built each year at domestic shipyards, demand for LNG ship commissioning services through the shipbuilding industry continues annually. With POSCO Energy acquiring this qualification, domestic shipbuilders will be able to receive LNG ship commissioning services more efficiently, which is expected to help secure business competitiveness.

In April this year, POSCO Energy completed the final acquisition of the terminal by receiving the 200,000㎘ capacity Tank No. 5 of the Gwangyang LNG Terminal from POSCO and is actively expanding its LNG terminal business. In particular, after acquiring the LNG terminal, it has been steadily reviewing the expansion of LNG terminal-linked businesses to diversify revenue beyond existing terminal lease income.

Jung Ki-seop, CEO of POSCO Energy, stated, "POSCO Energy is actively pursuing profit generation through a new business portfolio by expanding its scope not only in LNG power generation but also in the gas business," adding, "Based on the qualification for the 'Natural Gas Business for Ships' obtained this time, we will steadily develop LNG terminal-linked businesses and lead the gas market."

This content was produced with the assistance of AI translation services.