POSCO INTERNATIONAL has successfully completed the construction of Gwangyang LNG Terminal 1 on the 9th of July. This extensive infrastructure project, initiated in 2002, saw an investment of KRW 1.45 trillion over two decades.
The completion ceremony was attended by over 100 officials from the government and client companies, including Choi Nam-Ho, the second vice minister of the ministry of Trade; Park Chang-Hwan, the vice governor of South Jeolla Province; Jung In-Hwa, the mayor of Gwangyang; Kwon Hyang-Yeop, the National Assemblyman; Choo Hyung-Wook, the president of SK E&S; Lee Sang-Kyun, the president of Hyundai Heavy Industries; Kim Hwan-Yong, the vice president of Korea Gas Corporation; and POSCO Group executives including Lee Kye-In, POSCO INTERNATIONAL CEO.
Enhancing LNG Storage Capacity
POSCO INTERNATIONAL, a leader in Korea’s energy industry with a comprehensive LNG value chain encompassing exploration, production, storage, and power generation, initiated this project to secure stable infrastructure for LNG storage. The completed Gwangyang Terminal 1 now offers a storage capacity of 930,000 cubic metres across six storage tanks, alongside port facilities with a capacity of 180,000 cubic metres.
Gwangyang Terminal 1 not only provides natural gas for power generation and manufacturing in Korea’s key industries but also offers services for unloading, storing, regasifying, and discharging natural gas directly imported by client companies such as POSCO, S-OIL, and SK E&S.
Innovations in Construction
Storage Tanks No. 5 and 6 are the first in Korea to utilize cryogenic high-manganese steel, invented by POSCO. This steel is known for its excellent impact toughness and solidity in extreme environments of -162℃ or below, necessary to keep LNG liquefied. Additionally, the construction project applied the compaction pile method using steel byproducts, reducing the usage of natural aggregates while enhancing the soft ground of the landfill at Gwangyang Bay.
Future Developments
Construction of Gwangyang LNG Terminal 2 is also underway, with an investment of KRW 930 billion to add two 200,000 cubic-metre LNG tanks. This project is expected to be completed by 2026, increasing the total LNG storage capacity to 1.33 million cubic meters—sufficient for 40 days’ worth of heating gas for the entire population of Korea.
Such capacity enhances national energy security, aligning with global trends among advanced countries to secure energy demand sources and domestic infrastructure in response to the energy supply chain crisis and increased LNG demand.
Strategic Plans
POSCO INTERNATIONAL aims to strengthen the midstream sector of the LNG value chain—liquefaction, transportation, storage, and trading—with Gwangyang Terminal playing a pivotal role. Beyond the current LNG storage tank rental business, the company plans to develop complementary projects, such as sea trials and bunkering of LNG carriers, to support both domestic and international industries. These efforts will also lay the groundwork for advancing the blue hydrogen project in the future.
Remarks from Officials
Choi Nam-Ho, the second vice minister of the Ministry of Trade, highlighted the terminal’s significance: “Gwangyang LNG Terminal 1, which marked the inaugural commercial operation by a private company in Korea in 2005, has contributed to the nation’s economic growth and energy security. In light of escalating uncertainties in international energy supply and demand, we are committed to leveraging all available measures to mitigate industry impacts.”
Lee Kye-In, POSCO INTERNATIONAL CEO, expressed gratitude: “I’m deeply grateful to the executives, employees, and on-site labourers for creating a safe workplace without a single major incident since the commencement of terminal construction in 2002. In the future, we aim to ensure a stable supply of domestic energy and enhance our competitiveness in the global energy market through digital transformation initiatives that automate and optimise the operational management of Gwangyang LNG Terminals.”
POSCO INTERNATIONAL’s completion of Gwangyang LNG Terminal 1 marks a significant milestone in Korea’s energy infrastructure, setting the stage for future advancements and contributions to national and global energy security.
Fore more information visit www.posco.com
