POSCO International and Korea Southern Power Join Forces to Boost Domestic LNG Bunkering Business

MOU Signing Ceremony Held at POSCO Center on September 15
Korea Southern Power’s LNG-Fueled Vessels
To Use POSCO International’s Bunkering Services Starting in 2027

POSCO International and Korea Southern Power announced on September 16 that they signed a memorandum of understanding (MOU) on September 15 at POSCO Center in Seoul to promote the domestic liquefied natural gas (LNG) bunkering business.

LNG bunkering refers to the process of supplying LNG, which is used as a marine fuel, to ships. With this agreement, Korea Southern Power will be able to use POSCO International's domestic LNG bunkering services starting in 2027.

Due to the global trend toward carbon neutrality, demand for LNG, a low-emission energy source, is expected to exceed 20% of the entire marine fuel market in the medium to long term. However, the domestic LNG bunkering business is still in its early stages, making the full-scale commercialization and expansion of infrastructure urgent priorities.

Korea Southern Power, the first power generation public enterprise to introduce LNG-fueled vessels "Nambu 1" and "Nambu 2," has been sourcing fuel from overseas locations such as Singapore since their maiden voyage in 2023. This has resulted in unnecessary detours and time losses, continually highlighting the need for a domestic LNG bunkering business.

This agreement is significant as it demonstrates collaboration between a public institution and a private company to vitalize the domestic LNG bunkering business and improve the efficiency of the energy procurement process.

POSCO International has signed a Memorandum of Understanding with Korea Southern Power to promote the domestic LNG bunkering business. Min Changgi, Head of POSCO International (left in the photo), and Park Youngchul, Vice President of Korea Southern Power, are taking a commemorative photo. Photo by POSCO International

POSCO International has secured competitiveness by vertically integrating the entire LNG value chain-from exploration and production to transportation, storage, and power generation-through its 2023 merger with POSCO Energy. The company has established a stable procurement system by operating gas fields in Myanmar and Australia, entering into long-term contracts with Cheniere in North America, and operating its own LNG carriers.

The Gwangyang LNG Terminal is undergoing a large-scale investment to expand its storage capacity from the current 930,000 kiloliters to 1.33 million kiloliters, further strengthening POSCO International's position as a key player in the domestic energy supply chain.