Hanyang and Yeosu Near Groundbreaking of 'Northeast Asia LNG Hub Terminal'

A bird's-eye view of the Northeast Asia LNG Hub Terminal under construction by Hanyang in Yeosu-si, Jeollanam-do.

[Asia Economy Reporter Donghyun Choi] Hanyang announced on the 2nd that it has completed the preliminary work for the construction of the Northeast Asia Liquefied Natural Gas (LNG) Hub Terminal being built on Myodo Island, Yeosu-si, Jeollanam-do.

Last month, Hanyang completed the transfer of facility construction plan rights to Northeast Asia LNG Hub Terminal, a special purpose corporation established for this project. It also submitted an application for bonded area designation for part of the terminal site to lease tanks for the natural gas import and export business.

Once the bonded area designation is completed, it will be possible to officially promote the LNG trading business through reporting and construction plan approval related to the natural gas import and export business using storage facilities.

In March, Hanyang received construction plan approval from the Ministry of Trade, Industry and Energy for one 200,000㎘ LNG storage tank and the overall LNG terminal facilities at the 'Northeast Asia LNG Hub Terminal' located in Yeosu. This project supplies natural gas from the Northeast Asia LNG Hub Terminal to power plants using the Korea Gas Corporation pipeline network. Upon receiving construction plan approval for the natural gas import and export business through this bonded area application, a second LNG storage tank for overseas trading can be constructed in addition to the previously approved first tank.

With related permits soon to be finalized, Hanyang plans to start construction of two LNG tanks this month aiming for completion by the end of 2023. Depending on consultations with demand sources, a total of eight tanks will be completed, including two LNG tanks in 2024 and four LNG tanks from 2025 onwards. Starting from the fifth LNG tank, they plan to build the largest domestic tanks with a capacity of 270,000㎘.

The Northeast Asia LNG Hub Terminal project is expected to generate approximately 36,800 jobs and an economic production inducement effect of about 7.988 trillion KRW. Replacing coal fuel used in the Yeosu Industrial Complex with clean fuel LNG will also contribute to improving air quality in the Gwangyang Bay area and responding to total air pollutant emission regulations.

A Hanyang official stated, "Our goal is to build the world's largest commercial hub terminal by 2030 and achieve the world's number one LNG processing volume," adding, "Along with this, we have set 'Vision 2030' to grow into an energy company equipped with the most stable and affordable LNG supply facilities and services, and we are actively pursuing this business."