POSCO to Invest 750 Billion KRW in Gwangyang LNG Terminal Construction... "Creating Over 28,000 Jobs in 4 Years"

Investment Agreement with Jeollanam-do on the 22nd... Construction Job Creation Expected
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Kim Hak-dong, Vice Chairman and CEO of POSCO. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] POSCO Group will expand its liquefied natural gas (LNG) terminal in Gwangyang City, Jeollanam-do, with an investment of 750 billion KRW. Following the expansion, it is expected to secure jobs for about 600 construction workers monthly from the first half of this year until the second half of 2025. Over four years, this translates to creating 28,800 jobs.

NEH, a joint venture between POSCO and POSCO Energy, signed an investment agreement for the 'Gwangyang LNG Terminal Construction' with Jeollanam-do on the 22nd. Attendees at the signing ceremony included Kim Hakdong, Vice Chairman and CEO of POSCO; Kim Youngrok, Governor of Jeonnam; Jung Hyunbok, Mayor of Gwangyang; Jung Gisub, CEO of POSCO Energy; and Shin Eunju, CEO of NEH.

Vice Chairman Kim said, "This joint investment was made based on the group’s strategic decision to develop the terminal business as a growth engine linked to the group’s hydrogen business strategy," adding, "We will do our best to ensure that the Gwangyang LNG Terminal becomes a strong pillar for the future industrial development of Jeonnam."

Governor Kim responded, "The Gwangyang LNG Terminal is an essential infrastructure for realizing our province’s 2050 carbon neutrality policy," and said, "With the mindset of preparing growth engines for the next 100 years, we will actively attract advanced companies to participate in the low-carbon energy transition and focus our capabilities on building core infrastructure for new industries."

A view of POSCO Energy Gwangyang Liquefied Natural Gas (LNG) Terminal. (Photo by POSCO)

The two LNG storage tanks to be expanded this time will each have a capacity of 200,000㎘ and will be built on land near the existing Gwangyang LNG Terminal. Based on the technological expertise of POSCO Energy, which has operated the LNG terminal for several years, NEH, the newly established joint venture between POSCO and POSCO Energy, will be responsible for construction and operation. To expedite the project, the province and city have strengthened collaboration with POSCO Group to provide close support. They will also do their best to provide administrative support such as various permits and approvals required for the remaining LNG terminal expansion work.

This investment is expected to become a representative case of win-win cooperation between corporations and local governments. The group will enhance corporate competitiveness through the LNG terminal expansion, while local governments will promote economic growth by securing new jobs. The group expects to stably advance the LNG terminal business based on the additional LNG terminals, including expanding the use of clean fuels and introducing hydrogen-based steelmaking. They also plan to actively consider new investments in the development of the Donghoan power cluster, LNG bunkering business, and clean energy projects.

Additionally, the city anticipates a significant local job creation effect from the new LNG terminal construction. From the first half of this year until the completion of the terminal expansion in the second half of 2025, it will be possible to secure an average of about 600 construction worker jobs per month.

The Gwangyang LNG Terminal, built in 2005 as the first LNG terminal constructed by a private company in Korea, is operated by POSCO Energy. POSCO Energy currently operates five tanks with a total storage capacity of 730,000㎘. The sixth tank, with a capacity of 200,000㎘, is also under construction with a target completion in 2024. Once NEH builds two additional tanks by 2025, the group will have a total LNG storage capacity of approximately 1.33 million ㎘ based on the eight tanks installed in Gwangyang.

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