POSCO Group to Invest 750 Billion Won in Gwangyang LNG Terminal Construction

On the 22nd, Jeollanam-do and 'Gwangyang LNG Terminal Construction' Investment Agreement Signed

Kim Young-rok, Governor of Jeonnam, "Actively Attracting Advanced Companies with the Mindset of Preparing 100 Years of Growth Opportunities"

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] POSCO Group announced that it will expand its LNG terminal in Gwangyang City, Jeollanam-do, through an investment of 750 billion KRW.

NEH, a joint venture between POSCO and POSCO Energy, signed an investment agreement with Jeollanam-do on the 22nd for the 'Gwangyang LNG Terminal Construction.'

The signing ceremony was attended by POSCO Vice Chairman and CEO Kim Hakdong, Jeollanam-do Governor Kim Youngrok, Gwangyang Mayor Jung Hyunbok, POSCO Energy CEO Jeong Gisub, and NEH CEO Shin Eunju.

POSCO Vice Chairman and CEO Kim Hakdong stated, "This joint investment was made based on a strategic group-level decision to foster the terminal business as a future growth engine in connection with the group's hydrogen business strategy," adding, "We will do our best to make the Gwangyang LNG Terminal a strong pillar for the future industrial development of Jeonnam."

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

Through this joint investment, two LNG storage tanks, each with a capacity of 200,000㎘, will be constructed on a site near the existing Gwangyang LNG Terminal. NEH, the newly established joint venture of POSCO and POSCO Energy, will be responsible for construction and operation based on POSCO Energy's technology, which has operated the LNG terminal for many years.

To expedite the project, Jeollanam-do and Gwangyang City have strengthened collaboration with POSCO Group and provided close support. They are also making every effort to provide administrative support such as various permits and approvals for the remaining LNG terminal expansion construction.

This large-scale investment by POSCO Group is expected to become a representative case of sharing a win-win vision through close cooperation between corporations and local governments. POSCO Group will enhance corporate competitiveness through LNG terminal expansion, while Jeollanam-do and Gwangyang City will promote regional growth by securing new jobs.

POSCO Group expects to stably promote the LNG terminal business in preparation for mid- to long-term LNG demand growth, including expanding the use of clean fuels and introducing hydrogen reduction steelmaking, based on the additional LNG terminal. The group also plans to actively consider new investments in the development of the Donghoan power cluster, LNG bunkering business, and clean energy projects.

Additionally, Gwangyang City anticipates a significant job creation effect in the region due to the new LNG terminal construction.

From the first half of 2022 until the completion of the terminal expansion in the second half of 2025, an average of about 600 construction workers per month will be employed, which is expected to greatly contribute to revitalizing the local economy.

Meanwhile, the Gwangyang LNG Terminal, built in 2005 as the first LNG terminal constructed by a private company in Korea, is currently operated by POSCO Energy.

POSCO Energy operates five tanks with a total storage capacity of 730,000㎘ and is constructing a sixth tank with a capacity of 200,000㎘, scheduled for completion in 2024.

When NEH completes the additional two tanks by 2025, POSCO Group will have a total of eight tanks in Gwangyang, with approximately 1.33 million ㎘ of LNG storage capacity.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik hss79@asiae.co.kr

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