As tensions in the Middle East rise due to instability stemming from Iran, POSCO International is set to advance its plans to import liquefied natural gas (LNG) from North America. This move reflects a broader trend among South Korean energy companies to reduce dependence on Middle Eastern energy sources and diversify supply chains.
According to industry sources on May 26, POSCO International plans to start importing North American LNG from Cheniere Energy by the end of this year. The annual import volume is expected to be 400,000 tons, secured under a 20-year contract. If final procedures are completed by October, the imports could begin as early as December.
The company will utilize the HL Fortuna for transportation. The HL Fortuna, unveiled in May 2025, is POSCO Group's first dedicated LNG vessel, measuring 299 meters in length and 46.4 meters in width, with a capacity of 174,000 cubic meters. It can carry over 78,000 tons per trip, enough to supply South Korea's needs for approximately 12 hours. By combining long-term import volumes with its own transportation capabilities, POSCO International aims to stabilize its supply chain beyond simple trading.
The push to secure North American LNG comes at a critical time, as heightened tensions between Israel and Iran have increased uncertainties surrounding oil and LNG logistics through the Strait of Hormuz. South Korea's high dependency on energy imports means that disruptions in Middle Eastern supply chains could lead to increased electricity costs and manufacturing expenses.
North American LNG is viewed as a viable alternative to mitigate these risks. U.S. LNG is relatively insulated from maritime transport risks associated with the Middle East and offers greater predictability through long-term contracts. With rising domestic electricity demand driven by the expansion of AI data centers and advanced manufacturing facilities, securing stable LNG supplies has become increasingly important for both corporate and national energy security.
Other energy companies are also accelerating their supply chain diversification efforts. SK Innovation's E&S division is expanding its LNG procurement through the Barossa gas project in Australia, which aims to develop a gas field off the northern coast and connect it to the Darwin LNG facility, thereby securing long-term supply sources outside the Middle East. POSCO International is also pursuing participation in an LNG project in Alaska, which could potentially provide 1 million tons of LNG annually over 20 years.
Industry insiders believe that if POSCO International's North American LNG imports are confirmed, it could alleviate domestic supply concerns amid growing Middle Eastern risks. If the imports commence as planned by the end of this year, they could serve as a crucial buffer during the winter months when electricity and gas demand typically rises.
However, specific contract terms and the exact timing of the imports have not yet been publicly disclosed. Actual delivery schedules may be adjusted based on international LNG prices, shipping costs, domestic demand forecasts, and contract details. Should the North American LNG imports proceed as scheduled, POSCO International is expected to emerge as a leading example of supply chain diversification that mitigates risks associated with Middle Eastern energy dependence.
An industry official stated, "As tensions in the Middle East escalate, energy companies are compelled to broaden their procurement channels and reduce transportation risks. POSCO International's North American LNG imports represent a significant move not only for short-term supply stability but also for long-term energy security."
* This article has been translated by AI.
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