POSCO, Hanwha Ocean team up on high-manganese steel LNG cargo tanks
Hanwha Ocean CEO Kim Hee-cheul, fifth from left, shakes hands with POSCO President Lee Hee-geun, center, alongside officials from both companies in Geoje, South Gyeongsang Province, Thrusday, after signing a memorandum of understanding to build a demonstration LNG carrier equipped with high-manganese steel cargo tanks. Courtesy of POSCO
Korean steelmaker POSCO and shipbuilder Hanwha Ocean are teaming up to build a demonstration liquified natural gas (LNG) carrier equipped with high-manganese steel cargo tanks, aiming to strengthen Korea’s technological competitiveness in a market long dominated by foreign technology.
LNG fuel tanks store the fuel used to power LNG-fueled vessels, while cargo tanks on LNG carriers are large storage systems that hold the LNG itself for transportation overseas.
According to POSCO, the two companies signed a memorandum of understanding (MOU) at the shipbuilder’s Geoje shipyard to develop the demonstration vessel. The signing ceremony was attended by senior executives from both sides, including POSCO President Lee Hee-geun and Hanwha Ocean CEO Kim Hee-cheul.
The partnership comes amid expectations of rising LNG demand as countries seek lower-carbon energy sources, fueling demand for LNG carriers. Korean shipbuilders, however, remain dependent on foreign technology for cargo tanks, a key component of the vessels.
Under the MOU, the companies will develop cargo tanks using POSCO’s high-manganese steel, which retains its strength and impact resistance at temperatures of minus 163 degrees Celsius and below, according to the steelmaker.
The material has previously been used in ships only for fuel tanks. POSCO said the partnership would open up a much larger market for its proprietary steel technology, as cargo tanks on an LNG carrier can require 10,000 metric tons of steel or more — about 10 times the amount needed for LNG fuel tanks.
Hanwha Ocean will lead construction of the demonstration LNG carrier to test the cargo tanks under actual sailing conditions and build a track record to present to shipowners worldwide.
“POSCO’s proprietary high-manganese steel technology will be a key asset in giving Korean shipbuilders a decisive competitive edge in the global market,” Lee said.
“Starting with LNG cargo tanks, we will take the lead in setting global standards for materials used in eco-friendly ships.”