SEOUL, Jan. 31 (Korea Bizwire) — POSCO International Corp. said Tuesday it will spend 930 billion won (US$756 million) to build two more liquefied natural gas (LNG) terminals in South Korea as it seeks to bolster its energy business.
POSCO International broke ground on the Second Gwangyang LNG Terminal earlier in the day, the general trading and energy arm of South Korean steel giant POSCO Holdings Co. said in a release.
The project is to build two 200,000 kiloliter LNG tanks in Gwangyang, 299 kilometers south of Seoul, by 2025, the company said.
The new tanks will be an addition to its five LNG tanks under operation in the same city and the sixth one under construction with an aim for completion by next year.
Once fully completed, the Gwangyang terminals will have a storage capacity of 1.33 million kiloliters, enough to store heating gas that can be used by 51.5 million South Koreans for 40 days, POSCO International said.
Tuesday’s announcement came as POSCO International has stepped up its expansion into the energy sector, including in renewable energy like hydrogen. It completed the merger process with POSCO Energy Co., another POSCO unit, last week.
In its 2022 earnings report, which included the results of POSCO Energy, released last week, POSCO International said it posted a record operating profit of 1.17 trillion won and annual record sales of 41.7 trillion won.