Hanyang Begins Construction of 'Northeast Asia LNG Hub Terminal' on Myodo Island, Yeosu

Perspective view of the Northeast Asia LNG Hub Terminal that Hanyang is building on Myodo Island, Yeosu

[Asia Economy Reporter Choi Dong-hyun] Hanyang announced on the 26th that it received approval for the 'structure construction report' from Yeosu City on the 23rd to build the Northeast Asia Liquefied Natural Gas (LNG) Hub Terminal and will begin full-scale construction.

The Northeast Asia LNG Hub Terminal is a project by Hanyang to complete LNG storage tanks (4 units), vaporization and sending facilities, and a berth facility with a maximum capacity of 127,000 tons on a 650,000㎡ site in Myodo (猫島), Yeosu City, Jeollanam-do. The project cost is 1.2 trillion KRW.

Earlier in March, Hanyang received construction plan approval from the Ministry of Trade, Industry and Energy for one 200,000 kL LNG storage tank. Subsequently, it plans to secure additional demand within the year and obtain construction plan approvals for a total of three LNG storage tanks, completing all approvals for the originally targeted four tanks by 2024.

Starting with this groundbreaking, Hanyang plans to carry out foundation work by mid-2021 after obtaining permits within the year, and proceed with construction of main facilities such as LNG storage tanks and vaporization and sending equipment. Based on this, it aims to supply LNG to domestic power generation and industrial demand centers and provide storage and shipment services to global LNG traders.

At the end of last month, Hanyang obtained bonded area approval for leasing tanks for natural gas import and export business, and is preparing construction plans for import-export tanks, positioning itself as an open private terminal capable of overseas LNG trading. The open private terminal’s biggest feature is that it enables various domestic and international demand centers to trade by utilizing its capability for trading beyond storage and supply for domestic demand centers.

If Hanyang’s Northeast Asia LNG Hub Terminal becomes active, it can provide free choice to domestic LNG direct-import power plants, which are increasing due to eco-friendly energy transition policies. At the same time, it is expected to play a pivotal role as an LNG trading hub in Northeast Asia by leveraging its geographical advantage.

Hanyang is successfully transitioning from its existing construction business to an energy company specializing in LNG and renewables. The LNG business aims to build the world’s largest commercial hub terminal by 2030 and achieve the world’s number one LNG processing volume. In addition to LNG terminals, it plans to expand its business areas to bunkering, hydrogen industry, and cold energy utilization warehouses.

Furthermore, in the renewable power generation business, it completed the Solar City solar power plant, which has the largest domestic capacity of 98MW solar power facilities and the world’s largest 306MWh energy storage system (ESS). Recently, it also secured the Saemangeum floating solar power project.