Posco`s LNG terminal in Gwangyang. [Photo provided by Posco]
South Korea`s largest steelmaker Posco said on Monday that its board last week approved the transfer of its LNG terminal in Gwangyang, 423 kilometers southeast of Seoul, to its power generation affiliate, Posco Energy, as part of its efforts to enhance business efficiency.
In return, Posco will take over the off-gas combined cycle power plant run by the energy affiliate.
The change is part of Posco`s LNG mid-stream reorganization plan outlined in November by Posco chairman Choi Jeong-woo celebrating his 100 days in office. The plan focuses on maximizing synergy between Posco International, the steelmaker’s resource development and trading arm, and Posco Energy.
Mid-stream refers to the process of liquefying and transporting the LNG gas developed and extracted in the up-stream stage.
Posco expects the integration of the off-gas combined cycle power plants at Pohang and Gwangyang steel mills and existing in-house power generating facilities will raise operational efficiency and stabilize in-house power supply.
The power plants use excess gases generated by the steel mills to create electric power.
LNG Terminal to be acquired by Posco Energy was built by Posco in 2005. It has four established LNG tanks and another one is under construction, whose combined storage capacity amounts to 730,000 kilo liters.
By Kang Gye-man and Minu Kim
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