South Korea’s Posco International, a unit of steel giant Posco, is joining forces with compatriot LX International to build a large LNG import terminal in Dangjin.
According to a statement issued by Posco International, which merged with Posco Energy earlier this year, the firm signed the deal with LX International on May 31.
Under the deal, the two firms will build two storage tanks with a capacity of 270,000 kiloliters and other facilities for the Dangjin LNG terminal, it said.
The LNG terminal will be located on a large site at the Dangjin port, and besides the tanks it will have two vaporizers with a capacity of 200 tons per hour, an LPG facility, and one LNG jetty.
Once completed in 2027, the LNG terminal will have a capacity of 3.5 million tons per year and will supply the country’s western region, Posco International said.
Posco International’s already operates the Gwangyang import terminal, South Korea’s first private LNG terminal besides the Kogas-owned facilities.
Earllier this year, the company started construction of two LNG storage tanks with a capacity of 200,000 kiloliters on a site near the Gwangyang LNG terminal.
The 5.2 mtpa Gwangyang LNG terminal currently has five storage tanks.
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.
By 2027, Posco International expects to have 1.87 million cubic meters of LNG storage capacity in Gwangyang and Dangjin, it said.
Besides the terminal business, Posco International recently signed a long-term deal to charter one 174,000-cbm LNG carrier from compatriot H-Line Shipping.
South Korea’s Hyundai Samho will build this LNG carrier and deliver it in the first half of 2025.
Posco International will use this chartered LNG carrier to transport US shale gas to South Korea from 2026 to 2046.
In May 2022, Posco International signed a 20-year deal with Cheniere Marketing, a unit of US LNG exporting giant Cheniere, to buy LNG from the Corpus Christi expansion project in Texas.