POSCO International has completed the Gwangyang Second Liquefied Natural Gas (LNG) terminal with an investment of approximately 1 trillion won. Amid a downturn in the steel industry, POSCO Group Chairman Jang In-hwa's 'Triple Core' strategy aims to diversify revenue sources from steel to strategic and energy resources, which is now being recognized as a successful investment.
On November 10, POSCO International announced the completion ceremony for the Gwangyang Second LNG terminal. The event was attended by over 100 people, including Chairman Jang and POSCO International President Lee Gye-in.
Chairman Jang stated, "The Gwangyang Second LNG terminal is a clear result of POSCO Group's energy resource strategy within the Triple Core framework. With this completion, we aim to enhance the integrity of the LNG value chain and contribute to national energy security."
A total of 949.2 billion won was invested in the Gwangyang Second LNG terminal, which took 47 months to construct. The facility includes two LNG storage tanks with a capacity of 200,000 cubic meters each, a loading dock capable of accommodating LNG carriers of 270,000 cubic meters, and a bunkering dock for vessels of 20,000 cubic meters.
With this expansion, the storage capacity of the Gwangyang LNG terminal has increased from 930,000 cubic meters to 1.33 million cubic meters, making it the largest facility of its kind in South Korea operated by a private company.
POSCO International plans to strengthen its competitiveness in the LNG business following this completion. The company is currently establishing a value chain that spans from gas field development in Myanmar and Australia to LNG procurement, trading, terminal operations, and power generation. It also intends to expand related businesses, including the commissioning of LNG carriers and bunkering services.
In the strategic resource sector, the lithium business is showing promising results. The first lithium brine plant in Argentina recorded its first quarterly profit since entering the market in the second quarter of this year, and last month, the second plant's construction was completed. POSCO Group aims to increase its lithium production capacity from the current 93,000 tons to 173,000 tons by 2033.
In South Korea, POSCO Pilbara Lithium Solutions has established a supply chain for secondary battery materials through its hydroxide lithium plant with an annual capacity of 43,000 tons, POSCO Future M's cathode material plant with a capacity of 90,000 tons, and POSCO HY Clean Metal's battery recycling plant. Additionally, POSCO Air Solutions expanded its business into materials for the semiconductor and aerospace industries by completing a rare gas plant with an annual capacity of 130,000 normal cubic meters in June.
Choi Dong-young, head of the management strategy office at POSCO Holdings, stated during a strategic briefing held in Gwangyang on November 2, "Currently, about 50% of the group's revenue and 70% of its operating profit come from steel. By 2035, we aim to transition to a structure where industrial, strategic, and energy resources contribute almost equally to operating profit." The goal is to achieve sales of 187 trillion won and operating profit of 13.1 trillion won by 2035.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.