South Korea’s POSCO completes construction of first LNG terminal at Gwangyang - infrabuddy.net

South Korea’s POSCO completes construction of first LNG terminal at Gwangyang


South Korean gas developer and trader POSCO International said July 9 that it has fully completed construction of the first LNG terminal on the country’s southern coast, with its second terminal set to start up two years later.

“POSCO International has completed construction of the sixth and final tank with a capacity of 200,000 kiloliters at the Gwangyang LNG Terminal,” a company official said.

With the latest tank online, the Gwangyang LNG Terminal is now running six tanks with a combined storage capacity of 930,000 kiloliters, the official said.

POSCO International, run by the country’s top steelmaker POSCO, kicked off works to build the Gwangyang LNG Terminal in 2002 and started commercial operations of its first and second tanks in 2005, each with a capacity of 100,000 kiloliters, followed by the startup of No. 3 and No. 4 tanks each with a capacity of 165,000 kiloliters in 2010 and 2013, respectively, and No. 5 tank with 200,000 kiloliters in 2019.

The company has spent a total Won 1.05 trillion ($750 million) to build the Gwangyang LNG Terminal, which is capable of accommodating 180,000 cu m class LNG carriers.

“The Gwangyang LNG Terminal will offer comprehensive services from offloading and storage to regasification imported by POSCO and other local LNG importers such as S-Oil Corp. and SK E&S,” POSCO International said in the statement.

POSCO International started works in January 2023 to build another LNG terminal — Gwangyang-2 — with two tanks each with a capacity of 200,000 kiloliters, with an investment of Won 930 billion, which is expected to start commercial operations in July 2026.

Once that comes online, POSCO International will have two LNG terminals with a total capacity of 1.33 million kiloliters, enough to be used in the country for 40 days, the statement said.

The company is also pushing to build its third LNG terminal with two tanks each with a capacity of 270,000 kiloliters in Dangjin on the country’s west coast, with an aim to start commercial operations in 2027.

POSCO International, formerly Daewoo International that developed blocks A-1/A-3 offshore Myanmar, was incorporated into POSCO in 2010 following Daewoo’s bankruptcy.

The company has been ramping up the transition to eco-friendly sectors, such as LNG-based low-carbon energy and hydrogen. In January 2023, POSCO International merged POSCO Energy, a utility run by POSCO.

POSCO International’s Gwangyang Terminal is South Korea’s first privately-owned LNG terminal.

SK E&S, a private power generator and city-gas provider, and major energy developer GS Energy have jointly run the country’s second privately-owned LNG terminal in Boryeong on the west coast that has seven tanks with a combined capacity of 1.4 million kiloliters. It was completely built in October 2021.

State-run Korea Gas Corp. is running five LNG terminals that have 77 tanks with a combined capacity of 12.16 million kiloliters. Kogas is now building its fifth LNG terminal in Dangjin, which can store 2 million by 2031 — with 10 tanks each with a capacity of 200,000 kiloliters.

In total, South Korea currently runs seven LNG terminals with 90 tanks that can store a total of 14.49 million kiloliters.
Source: Platts





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