Posco International's "Yeosu Gwangyang Port LNG Bunkering" Project Progressing Smoothly

Cooperation System with Posco Flow and Yeosu Gwangyang Port Authority

Posco International announced on the 30th that it had signed a "Yeosu Gwangyang Port LNG Bunkering Cooperation System Establishment Memorandum of Understanding" with Posco Flow and Yeosu Gwangyang Port Authority on the 29th.

Posco International announced on the 30th that it signed a "Yeosu Gwangyang Port LNG Bunkering Cooperation System Establishment Memorandum of Understanding" with Posco Flow and Yeosu Gwangyang Port Authority on the 29th. From the left, Min Changgi, Head of Energy Business Division at Posco International; Hong Sangpyo, Vice President of Operations at Yeosu Gwangyang Port Authority; Kim Jongpil, Head of Raw Material Logistics at Posco Flow. Posco International

The three parties will establish LNG infrastructure for ship fuel in the Yeosu Gwangyang Port area at an early stage. In addition, they plan to create a comprehensive support system covering the entire cycle from the introduction to the operation of LNG bunkering vessels, based on the Gwangyang LNG Terminal, in order to boost fuel supply for LNG-powered ships.

Posco International will be responsible for the entire process from LNG procurement to bunkering services by utilizing the storage tanks and dedicated bunkering pier at the Gwangyang LNG Second Terminal, which is scheduled for completion next year. Yeosu Gwangyang Port Authority will handle safety reviews and support policy systems to promote LNG bunkering, while Posco Flow, leveraging its vessel operation capabilities, will oversee the construction and operation of a 12,500-cubic-meter LNG bunkering vessel scheduled for delivery in 2027.

In the global shipping industry, demand for LNG-powered ships is rapidly increasing as companies rush to switch fuels in response to International Maritime Organization (IMO) regulations. The industry projects that about 30% of newly built vessels over the next decade will be LNG-powered. The number of LNG-powered vessels, which stood at 354 at the end of 2022, is expected to grow to 778 by 2027, representing an average annual growth rate of nearly 30%.

Consequently, the LNG bunkering market, which supplies fuel to LNG vessels, is also drawing attention. LNG bunkering is carried out through ship-to-ship supply, port facility supply, or direct supply from onshore tanks or trucks.

Gwangyang Port Hinterland Complex. Yeosu Gwangyang Port Authority

Yeosu Gwangyang Port is considered to have optimal conditions for LNG bunkering. Annually, 65,000 vessels call at the port, handling 213 million tons of import and export cargo. It serves as a key hub on Asia-Pacific routes, and potential bunkering demand from global shipping companies, including Japan's three major shipping firms, has already been confirmed.

Posco International plans to complete the dedicated bunkering pier at the Gwangyang Second Terminal by the third quarter of next year, establishing the largest domestic LNG storage infrastructure with a total capacity of 1.33 million kiloliters across the first and second terminals. In May 2027, the company aims to deploy a 12,500-cubic-meter dedicated vessel to launch LNG bunkering services at southeastern ports, securing a stable demand base through long-term supply contracts with global shipping companies.

Furthermore, based on the dedicated pier and vessel, the company envisions expanding into various related businesses, including LNG development and production, transportation and storage, supply and sales, storage tank leasing, and ship trial operations, in addition to LNG bunkering. Min Changgi, Head of Energy Business Division at Posco International, stated, "With the Gwangyang LNG Terminal as a foundation, we have established the entire value chain from exploration to supply," adding, "Based on cooperation among the three companies, we plan to build an efficient and stable LNG bunkering supply system."

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