South Korea’s No. 2 steelmaker Hyundai Steel Co. will start mass producing 9% nickel steel thick plates for liquefied natural gas (LNG)-fuel tanks for the first time among Korean steelmakers to meet the growing demand for the environmentally-friendly vessels under tightened regulations.

Hyundai Steel announced Thursday that it will kick off commercial production of 9% nickel steel plates domestically for the first time to cut the country’s 100-percent dependence on foreign supplies.

The 9% nickel steel, which the steelmaker completed development in December last year, is the most commonly sought steel grade for LNG fuel tanks that boasts high durability. The steel is known to withstand even in a minus 196 decree Celsius environment suitable for LNG transport and storage.

Hyundai Steel has already been supplying the steel for the fuel tanks of two LNG-powered very large container carriers (VLCC) under construction by Hyundai Heavy Industries since last month. The total supply volume amounts to 2,100 tons.

The steelmaker plans to actively supply materials for LNG fuel tanks as well as on-shore storage tanks used in LNG plants and terminals, the company said.

Shares of Hyundai Steel finished Friday unchanged at 52,400 won ($45.95).

By Han Woo-ram and Lee Soo-min

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