POSCO-Koryo Welding Rod, Localization of Welding Materials for Onshore LNG Storage Tank Fabrication

Successful Localization of Welding Materials After Over a Year of Development, 30% Cost Reduction

Targeting Land and Offshore LNG Storage Tank Market Through 9% Nickel Steel and Welding Materials Package Supply Initiative

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO and Goryeo Welding Rod announced on the 21st that they have succeeded in domesticating welding materials necessary for the production of onshore LNG storage tanks.

Onshore LNG storage tanks are recently being designed with seismic special grade A models to increase capacity and improve safety, requiring the steel and welded parts of the storage tanks to have higher strength and toughness than before, as well as impact-resistant toughness (靭性).

In particular, the inner tank that stores LNG at minus 165°C uses 9% nickel steel and expensive nickel-based welding materials that can withstand cryogenic environments.

POSCO developed the cryogenic 9% nickel steel domestically for the first time in the early 1990s and has supplied it to domestic and overseas LNG projects, but welding materials have been entirely imported due to issues such as high toughness (靭性) and work efficiency.

Accordingly, POSCO and Goryeo Welding Rod signed a strategic technology development agreement last year and started developing domestic welding materials for 9% nickel steel. After about a year of development, they jointly developed three types of welding materials that can be used for all welding methods including manual, automatic, and semi-automatic welding.

The domestically developed welding materials have secured quality levels equivalent to imported materials, and their weldability is even superior, minimizing welding defects.

The welded parts applied with POSCO's 9% nickel steel and domestic welding materials passed large-scale fracture tests conducted in July and September this year by Korea Gas Corporation, the domestic LNG storage tank client, and overseas construction designers, securing high reliability by meeting all quality standards of Korea Gas Corporation and test items of overseas construction designers.

Furthermore, the domestication of welding materials is expected to reduce costs by more than 30% compared to imported materials.

The global LNG market is expected to grow by 3-5% compared to the previous year this year and is projected to continue growing until 2040.

Korea is expected to see continuous growth in new LNG demand for industrial and eco-friendly fuel use, with domestic LNG demand projected to increase by about 7 million tons to 52.35 million tons by 2034 compared to this year.

Accordingly, 18 additional storage tanks, including 10 by Korea Gas Corporation and 8 by the private sector, are expected to be constructed by 2031, leading to a significant increase in demand for 9% nickel steel and welding materials.

In the future, the two companies plan to package and supply 9% nickel steel and welding materials together.

Starting with the large-capacity LNG storage tanks at the Dangjin LNG base, whose construction begins this year, they plan to expand application to domestic and overseas onshore LNG projects and actively target the marine storage tank market such as LNG-fueled ship fuel tanks and LNG bunkering.