POSCO International Corp. is going all-out to expand its liquefied natural gas (LNG) infrastructure as global demand for the environmentally friendly power generation fuel grows.
POSCO International has announced a won 950bn (USD 657M) investment project that involves expanding the Gwangyang LNG Terminal 2 with two additional 200,000-kiloliter tanks.
The existing Gwangyang LNG Terminal 1, which includes six tanks, was completed in July after 22 years of development and an investment of won 1.05 trillion.
LNG has gained significant attention as a bridge fuel under the second Trump administration, with U.S. President Donald Trump expected to expand oil and gas drilling and approve new LNG export terminal permits.
If global LNG demand surges, competition among countries for spot contracts could lead to soaring prices, highlighting the importance of securing adequate LNG supply through storage terminals to mitigate price fluctuations.
POSCO International is a key player in Korea’s LNG business, developing both onshore and offshore gas fields in Myanmar, Indonesia, and Australia.
In Korea, the company operates the Gwangyang LNG Terminal and Incheon LNG power plant.
The Gwangyang LNG Terminal primarily leases LNG storage space (tanks) to major energy companies such as SK E&S Co. and S-Oil Corp., with annual lease revenues of around won 100bn and an operating profit margin of 30-40%.