South Korea’s Posco International, a unit of steel giant Posco, has started building two LNG tanks at its Gwangyang import terminal.
Posco International, which merged with Posco Energy this month, said in a statement it held the groundbreaking ceremony for the second Gwangyang LNG terminal in South Jeolla province on January 31.
The project includes the construction of two LNG storage tanks with a capacity of 200,000 kiloliters on a site near the Gwangyang LNG terminal, according to Posco International.
Also, the total costs to build the tanks will reach 930 billion won ($752 million).
Posco International expects the new LNG tanks to go into service in 2025.
The firm said the project would contribute to South Korea’s energy security through stable LNG supply amid the global energy crisis.
Parent Posco revealed this project in February last year.
The 5.2 mtpa Gwangyang LNG terminal is Korea’s first private LNG terminal besides the Kogas-owned facilities and it currently has five storage tanks.
The first and the second tanks started operation in 2005 followed by the third in October 2010 and the fourth in May 2013. Also, the latest and the fifth tank started commercial operations in December 2019.
Besides LNG tanks, the terminal also features an LPG tank, a jetty, and other regasification and additional facilities.
Posco is also expanding the LNG import terminal at Gwangyang with the addition of a sixth tank.
This tank with a capacity of 200,000 kiloliters should enter operation in 2024.
Following completion of the two new tanks in 2025, Posco said it would have eight LNG tanks with a capacity of 1.33 million kiloliters.