Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
POSCO International expands presence as eco-friendly energy supplier
A liquefied petroleum gas (LPG) carrier undergoes testing at POSCO International's liquefied natural gas (LNG) terminal in Gwangyang, South Jeolla Province, Tuesday. Courtesy of POSCO International
By Park Jae-hyuk
By Park Jae-hyuk
SHINAN COUNTY/GWANGYANG, South Jeolla Province ― A liquefied petroleum gas (LPG) carrier anchored in a dock attached to POSCO International's liquefied natural gas (LNG) terminal in Gwangyang, South Jeolla Province, was undergoing a test on Tuesday, ahead of its first voyage this week.
Inside the Greek shipping company-owned vessel, built by Hyundai Samho Heavy Industries, was a Korean captain and his foreign crew, who will transport the low-carbon fuel.
“We had to test our ships in other countries, when there were no empty spots at LNG terminals run by the Korea Gas Corp.,” a Hyundai Samho Heavy Industries official told reporters on board. “Thanks to POSCO International's LNG terminal, however, we have been able to test more vessels in Korea.”
The facility is Korea's first privately owned LNG terminal.
POSCO International has five LNG tanks there, which can collectively store 730,000 kiloliters of gas. The company has leased the tanks to multiple energy companies in Korea, while sending certain amounts of LNG to POSCO Group's other affiliates.
The terminal's No. 6 LNG tank under construction was also disclosed to the press. The construction of the dome-shaped tank which is 90 meters in diameter and 56 meters in height is supposed to be finished by June 2024.
A POSCO International official in charge of the terminal's construction projects said that the tank can endure a minus 162 degrees Celsius storage temperature, thanks to the high-manganese steel encasing the tank. The material, which was developed independently by POSCO, is more affordable than 9 percent nickel steel, which is used for No. 1 to 4 tanks.
“This tank can withstand a 6.5-magnitude earthquake, as well as missile attacks,” the POSCO International official said.
The interior of the No. 6 liquefied natural gas (LNG) tank, which is under construction at POSCO International's LNG terminal in Gwangyang, South Jeolla Province / Courtesy of POSCO International
Late last month, POSCO International began building a second LNG terminal next to the first one.
Intending to build two 200,000-kiloliter tanks by the end of 2025, the company seeks for its Gwangyang LNG terminal to become the world's 11th-largest LNG terminal.
“With a stable supply of LNG, we will offer vessel testing and bunkering services at our terminal, so as to enhance our competitiveness in the global market,” POSCO International said in a press release.
Shinan Green Energy's wind turbines stand in a row along the coast on Jaeun Island in Shinan County, South Jeolla Province, Tuesday. Courtesy of POSCO International
Before the tour of Gwangyang LNG terminal, POSCO International unveiled a wind farm operated by its subsidiary, Shinan Green Energy, on Jaeun Island, one of hundreds of islands in Shinan County.
The wind farm has 14 wind turbines made by Doosan Enerbility and six wind turbines made by Denmark's Vestas.
The electricity generated from the wind farm is sent to the Korea Electric Power Corp.'s substation on another island in the county, in order to supply power to thousands of households in Shinan and neighboring Mokpo.
“We are considering establishing additional wind turbines, once regulations are eased concerning the distance of turbines from houses,” a Shinan Green Energy official said.
In addition to the wind farm, POSCO International operates a solar power complex on a wasted salt farm in Shinan. The complex has produced 20,000 MWh of electricity per year.
The company also plans to build 36 wind turbines off the coast of Jaeun Island, in order to produce 70MWh of electricity per year. By investing 1.6 trillion won ($1.2 billion), it aims to begin the construction in December 2024 and complete the construction in December 2027.
POSCO International emphasized that its recent merger with POSCO Energy will make it possible to integrate POSCO Group's overall energy businesses. The company said it will accelerate efforts to supply environmentally friendly energy sources in line with the global trend of pursuing carbon neutrality.