Hanyang Attracts LNG Power Plant on Site for Northeast Asia LNG Hub Terminal

Aerial View of the Entire Northeast Asia LNG Hub Terminal

[Asia Economy Reporter Donghyun Choi] Hanyang announced on the 6th that it has signed a mutual agreement with Korea Western Power to construct a liquefied natural gas (LNG) power plant and to use the LNG hub terminal.

The site for the Yeosu Myodo Port Redevelopment Project, where Hanyang is promoting the Northeast Asia LNG hub terminal business, covers a total area of 3.1 million square meters. Through this agreement, Korea Western Power will build a 500MW-class LNG power plant on approximately 100,000 square meters of this site and will use Hanyang’s Northeast Asia LNG hub terminal during future operations.

In addition to this agreement with Hanyang, Korea Western Power also signed an investment agreement with Yeosu City at Yeosu City Hall on the same day to promote the LNG combined power generation project. This is expected to further accelerate the LNG combined power plant project in collaboration with Hanyang.

According to Hanyang, when the LNG power plant and LNG hub terminal are located on the same site, the expected benefits such as increased power generation efficiency and cost reduction are greater than when they are separate. Mixing the cold discharge water from the LNG hub terminal with the warm discharge water from the power plant can reduce the rise in seawater temperature, improve power plant efficiency, and relatively reduce greenhouse gas emissions. Additionally, costs can be saved by avoiding the construction of additional pipelines or the use of Korea Gas Corporation’s pipeline facilities, and the introduction of cheaper fuel through direct LNG import can contribute to lowering electricity rates. The construction of the LNG power plant and hub terminal is also expected to have direct effects such as job creation and population inflow, as well as indirect effects like production inducement and employment inducement.

Hanyang received approval for the construction plan of one 200,000㎘-class storage tank for the Northeast Asia LNG hub terminal from the Ministry of Trade, Industry and Energy in March. At the end of last month, it also obtained permission for a bonded area to lease tanks for natural gas import and export business, and is preparing for the construction plan of additional import-export tanks.

Hanyang is finalizing permits for groundbreaking this month and is promoting the construction of two LNG tanks with a target completion by the end of 2023. Furthermore, depending on consultations with additional demand sources such as Western Power, it plans to complete two LNG tanks in 2024 and four LNG tanks after 2025, totaling eight tanks. Starting from the 5th LNG tank, it will be constructed with a capacity of 270,000㎘, the largest scale in Korea. Based on this, Hanyang will supply LNG to domestic power generation and industrial demand sources and provide LNG storage and export services to global LNG traders. Additionally, Hanyang plans to expand its business areas to LNG bunkering, hydrogen industry, and cold energy utilization warehouses.

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