POSCO International kicks off LNG terminal expansion in Dangjin

The Korea Times

The Korea Times

Business

Tue, October 3, 2023 | 05:57

Companies

POSCO International kicks off LNG terminal expansion in Dangjin

Posted : 2023-05-31 16:32

Updated : 2023-06-01 10:29

POSCO International Vice Chairman Jeong Tak, second from right, poses with South Chungcheong Province Governor Kim Tae-heum, center, and other government and company officials during the Dangjin LNG Terminal Local Government Agreement Ceremony at the South Chungcheong Provincial Office in Hongseong County, Wednesday. Courtesy of POSCO International

By Kim Hyun-bin

POSCO International is moving forward with its liquefied natural gas (LNG) terminal expansion project in Dangjin, South Chungcheong Province, the company said Wednesday.

POSCO International and LX International have committed to successfully completing the construction of two storage tanks and auxiliary facilities at the Dangjin LNG Terminal covering an area of about 20 hectares. The completion of the terminal will enable POSCO International to secure infrastructure for midstream LNG storage, which is part of the LNG value chain.

The planned construction includes two LNG storage tanks with a total capacity of 270,000 kiloliters, two vaporizers capable of processing 200 tons per hour, LPG regasification facilities and a dock for LNG carriers. Once completed in 2027, it will serve as a significant LNG terminal in the western region, capable of handling 3.5 million tons of LNG annually.

POSCO International Gwangyang LNG Terminal / Courtesy of POSCO International

POSCO International held a ceremony to mark the agreement for the project with South Chungcheong Province, Dangjin City, Dangjin Tank Terminal and LX International at the South Chungcheong Provincial Office, Wednesday.

The trading and energy arm of POSCO Group has been working on developing a complete LNG value chain, from exploration and production to storage and generation.

As the first private company in Korea to commence commercial operations at the Gwangyang LNG Terminal in 2005, POSCO International currently operates five tanks with a combined capacity of 730,000 kiloliters.

Construction of the sixth tank, with a capacity of 200,000 kiloliters, is currently underway and expected to be completed in the first half of 2024. In addition, the company has started the project of adding the seventh and eighth tanks, each with a capacity of 200,000 kiloliters.

Upon the completion of the expanded LNG tanks in Gwangyang and Dangjin, POSCO International will have a total LNG storage capacity of approximately 1.87 million kiloliters, nearly 2.6 times its current capacity of 730,000 kiloliters. This increased storage capacity will ensure a stable LNG supply and strengthen terminal-related businesses, such as ship trials and bunkering.

hyunbin@koreatimes.co.kr