Gas Business
A key growth driver for POSCO INTERNATIONAL is the development of oil and gas resources, which encompasses the full spectrum of E&P (Exploration & Production) activities, including exploration, development, production, and sales. This includes operations such as managing the Myanmar gas field in-house, overseeing Australia's SENEX Energy, and conducting exploration in Malaysia's PM524 and Indonesia's Bunga Block, among other global projects.
Myanmar Gas Field
The largest overseas resource development project undertaken by a privately-owned Korean company
Since signing the production-sharing contract for Block A-1 in the western offshore of Myanmar in 2000, we have achieved significant milestones, including gas discoveries in Shwe field in 2004, Shwe Phyu field in 2005, and Mya field in Block A-3 in 2006. This project is the pinnacle of nearly 13 years of effort, including the achievement of the first gas production in June 2013. It holds significance that it is the largest overseas resource development business undertaken by a domestic private company.
The gas produced from the Shwe, Shwe Phyu, and Mya gas fields is supplied to Myanmar and China through a 793 km-long onshore gas pipeline that extends to the Myanmar-China border, providing an average daily volume of 500 million cubic feet. To secure additional production capacity, we initiated the Phase 2 development project beginning with the EPCIC(The process includes designing, purchasing, manufacturing, installing, and testing equipment) work in July 2018. By August 2022, the project successfully finalized production well drilling, completion, and offshore installation work, and currently maintains the stable production and supply of gas. In February 2021, as part of the Phase 3 development project, we carried out EPCIC to install a gas compression platform to produce low-pressure gas from the reservoir, and in 2024, we will install and start operating it in the offshore area of Myanmar.
The gas produced from the Shwe, Shwe Phyu, and Mya gas fields is supplied to Myanmar and China through a 793 km-long onshore gas pipeline that extends to the Myanmar-China border, providing an average daily volume of 500 million cubic feet. To secure additional production capacity, we initiated the Phase 2 development project beginning with the EPCIC(The process includes designing, purchasing, manufacturing, installing, and testing equipment) work in July 2018. By August 2022, the project successfully finalized production well drilling, completion, and offshore installation work, and currently maintains the stable production and supply of gas. In February 2021, as part of the Phase 3 development project, we carried out EPCIC to install a gas compression platform to produce low-pressure gas from the reservoir, and in 2024, we will install and start operating it in the offshore area of Myanmar.
| Participating Year | 2000 (production started in June 2013) |
| Stake | 51% (operator) |
| Area | 5,560㎢ |
| Participating Companies | ONGC VIDESH (India's state-owned petroleum company), MOGE (Myanmar’s state-owned petroleum gas company), GAIL (India’s state-owned gas company), Korea Gas Corporation (KOGAS) |
Australia’s SENEX ENERGY
First step for steady expansion of gas field business and energy transition
As of 2022, POSCO INTERNATIONAL has become the majority shareholder by acquiring 50.1% of shares and secured management rights of the energy company Senex Energy, based in eastern Australia, in partnership with Australia's Hancock Energy. Ranked fifth in Australia's oil and gas sector, Senex Energy owns two producing gas fields (Atlas and Roma North) and two exploration and evaluation blocks (Rockybar and Range) located onshore in Queensland. We are optimizing development plans and actively managing the gas field business to ensure stable expansion and continued business operations. Additionally, apart from its core business, we are closely collaborating with Senex Energy to achieve carbon neutrality and undertake eco-friendly energy projects, such as green hydrogen production.
New Explorations
Continued efforts to secure new mining rights and accelerate the block development
Malaysia
We are evaluating the prospect of the PM524 exploration block located offshore Malaysia in collaboration with Malaysia's state-owned oil and gas company, Petronas Carigali.
We are evaluating the prospect of the PM524 exploration block located offshore Malaysia in collaboration with Malaysia's state-owned oil and gas company, Petronas Carigali.
| Participating Year | November 2021 |
| Stake | 80% (operator) |
| Area | 4,446㎢ |
| Participating Company | Petronas Carigali (Malaysia’s state-owned oil and gas company) |
Indonesia
We have conducted a joint survey in Bunga located in the eastern offshore of Java, Indonesia, together with Indonesia's state-owned oil and gas company Pertamina. We have now secured the Bunga block to begin our exploration activities in full force and expect to introduce LNG domestically in the event we discover a large gas field.
We have conducted a joint survey in Bunga located in the eastern offshore of Java, Indonesia, together with Indonesia's state-owned oil and gas company Pertamina. We have now secured the Bunga block to begin our exploration activities in full force and expect to introduce LNG domestically in the event we discover a large gas field.
| Participating Year | July 2023 |
| Stake | 50% (operator) |
| Area | 8,500㎢ |
| Participating Company | PHE (Pertamina Hulu Energi, a subsidiary 100% owned by Pertamina) |
In 2017, we became the first domestic trader in the LNG trading sector, opening the doors of LNG trading and expanding our reach into the trading market by developing overseas projects and leveraging our trading expertise and Gwangyang LNG terminal. Additionally Based on our overseas project development capabilities, we are securing overseas LNG infrastructure such as import terminals and liquefaction plants. These will become long-term fixed demand sources in connection with the group's gas business strategy. Additionally, we are actively promoting the LNG bunkering business.
LNG Import Terminal
Gwangyang LNG Terminal
We have operated an LNG terminal in Gwangyang. Equipped to load, unload, store, regasify, and distribute LNG supplied to Korea, the Gwangyang LNG Terminal is the first private LNG import terminal in the nation.
| LNG Import Terminal | Gwangyang LNG Terminal |
| Location | 2148-581 Jecheol-ro, Gwangyang-si, Jeollanam-do, Korea |
| Site Area | 260,000㎡ |
| Site Area | 930,000 kl (including the Tank #6 to be completed in June 2024) |
The Gwangyang LNG Terminal is a crucial facility in the LNG Value Chain. It is an LNG storage infrastructure asset that plays a central role in the LNG business by connecting the upstream, responsible for developing and producing LNG, with the downstream, which supplies gas to end consumers.
Currently, we operate six tanks, with a sixth tank set for completion by June 2024, and are expanding in stages in Gwangyang and beyond in order to address the needs of customers located in the vicinity of the terminal with direct pipeline access as well as the group's captives, spanning LNG power generation, bunkering, and trading businesses.
Currently, we operate six tanks, with a sixth tank set for completion by June 2024, and are expanding in stages in Gwangyang and beyond in order to address the needs of customers located in the vicinity of the terminal with direct pipeline access as well as the group's captives, spanning LNG power generation, bunkering, and trading businesses.
Trading
Completion of LNG business value chain and stable procurement through expanded LNG trading
In 2017, we started LNG trading operations based on our expertise in overseas energy resource development, specialized trading capabilities, and the LNG demand within the POSCO Group. In 2023, we secured an additional LNG business value chain, from LNG import terminals to power generation, by merging with POSCO ENERGY. We plan to contribute to stabilizing the domestic energy supply by stably procuring LNG through our dedicated vessels and an increase in trading volume.
In August 2020, we became the first in Korea to be awarded the "Business Operator of Natural Gas for Ships" title. Currently, we provide initial LNG supply to international shipping companies.
In September 2020, we acquired the "Natural Gas Exporter and Importer" title, taking advantage of the strategically located Gwangyang LNG Terminal's bonded tanks to expand LNG exports to the Northeastern Asian region, such as Japan and China. Furthermore, we launched our Storage & Reloading business to support the optimization of cargo operations for global trading companies.
In August 2020, we became the first in Korea to be awarded the "Business Operator of Natural Gas for Ships" title. Currently, we provide initial LNG supply to international shipping companies.
In September 2020, we acquired the "Natural Gas Exporter and Importer" title, taking advantage of the strategically located Gwangyang LNG Terminal's bonded tanks to expand LNG exports to the Northeastern Asian region, such as Japan and China. Furthermore, we launched our Storage & Reloading business to support the optimization of cargo operations for global trading companies.
LNG Bunkering
Supplying LNG as Marine fuel to LNG-powered ships (business feasible with the necessary infrastructure such as LNG terminals and LNG bunkering ships)
We are advancing into the LNG bunkering business to supply LNG, a low-carbon fuel, to ships. We plan to build a dedicated bunkering infrastructure at the Gwangyang LNG terminal to ensure a stable supply of low-carbon fuel to ships. This will activate the domestic LNG bunkering market and help us to proactively respond to international environmental policies.
There are three types of LNG bunkering methods. LNG bunkering supply to global oceangoing ships is carried out using the Ship-to-Ship (STS) method.
STS is a method in which an LNG bunkering ship supplies LNG to medium-to-large-sized (200-10,000㎥ tank capacity) LNG-powered ships. It is useful for large-scale bunkering and allows bunkering at sea without the need to enter a terminal.
There are three types of LNG bunkering methods. LNG bunkering supply to global oceangoing ships is carried out using the Ship-to-Ship (STS) method.
STS is a method in which an LNG bunkering ship supplies LNG to medium-to-large-sized (200-10,000㎥ tank capacity) LNG-powered ships. It is useful for large-scale bunkering and allows bunkering at sea without the need to enter a terminal.
LNG/LPG Ship Commissioning
Ensuring the smooth operation of key equipment, such as cargo holds on LNG/LPG carriers under construction (Marine natural gas business)
Since August 2020, we have proudly become Korea's first "Marine Natural Gas Operator," overseeing ship commissioning operations.
This entails inspecting whether newly built LNG and LPG carriers guarantee secure gas storage and their optimal equipment functions properly.
Moreover, we are operating a port-to-ship (PTS) bunkering business, supplying LNG/LPG as fuel.
Our Gwangyang LNG Terminal has grown into the world's largest single terminal by business volume, thanks to our ship commissioning and PTS bunkering operations. This growth actively contributes to the advancement of the shipbuilding and shipping industries.
This entails inspecting whether newly built LNG and LPG carriers guarantee secure gas storage and their optimal equipment functions properly.
Moreover, we are operating a port-to-ship (PTS) bunkering business, supplying LNG/LPG as fuel.
Our Gwangyang LNG Terminal has grown into the world's largest single terminal by business volume, thanks to our ship commissioning and PTS bunkering operations. This growth actively contributes to the advancement of the shipbuilding and shipping industries.
LPG Sales
LPG domestic and overseas resale business utilizing LPG facilities at Gwangyang LNG Terminal
Our Gwangyang LNG Terminal boasts Liquefied Petroleum Gas (LPG) facilities as well as LPG storage tanks and onshore/offshore shipping capabilities.
These facilities enable us to enhance our revenue streams by blending LPG for calorific control of LNG or directly selling it to customers both domestically and overseas.
Domestically, we distribute LPG via tanker trucks, while internationally, we utilize Very Large Gas Carriers (VLGCs). Looking ahead, we aim to expand our business further by selling small pressurized vessels through future facility expansions.
These facilities enable us to enhance our revenue streams by blending LPG for calorific control of LNG or directly selling it to customers both domestically and overseas.
Domestically, we distribute LPG via tanker trucks, while internationally, we utilize Very Large Gas Carriers (VLGCs). Looking ahead, we aim to expand our business further by selling small pressurized vessels through future facility expansions.
LNG Liquefaction Terminal
Oman LNG Liquefaction Plant
| Participating Year | 1997 (production started in 2000) |
| Stake | 20% of KOLNG (1% of OLNG) |
| Processing Capacity | 7.1 million tons a year |
| Participating Companies | Oman Government, Shell, Total, KOLNG*(Korea LNG), Partex, Mitsubishi, Mitsui, Itochu |
* KOLNG: Korea Gas Corporation, Samsung C&T Corporation, Hyundai Corporation, and SK Innovation
As an independent power producer (IPP), we have the capabilities to undertake tasks ranging from overseas power generation project development, investment, financial procurement, execution, and operation. We are actively pursuing projects that align with POSCO Group's energy strategy and are expected to create synergies. Leveraging our expertise in overseas project development and the robust overseas network, we aim to continuously generate new IPP business opportunities for strategic power generation sources, such as gas combined cycle power plants in regions with high growth potential, such as emerging Asian countries, Central and South America, and Africa.
Domestic Power Plants
Incheon LNG Combined Cycle Power Plant
As the first private power generator in Korea, POSCO ENERGY has been supplying stable electricity to the Seoul metropolitan area for over 50 years through the operation of Incheon LNG Combined Cycle Power Plant. In January 2023, we merged with POSCO ENERGY in an attempt to expand our domestic and international power generation businesses, further strengthening our competitive edge in the energy sector.
| Location | 314, 363 Jungbong-daero 405beon-gil, Seo-gu, Incheon, Korea |
| Site Area | 478,060㎡ |
Facilities and Operations
The Incheon LNG Combined Cycle Power Plant operates a total of 7 combined cycle power generators with a facility capacity of 3,412 MW, which accounts for approximately 9% of the power generation capacity in the Seoul metropolitan area. LNG combined cycle power generation uses natural gas to drive both gas and steam turbines, yielding high power generation efficiency while offering a very short start-up and shutdown time, enabling an immediate response to urgent power demand. As a result, the power plant contributes to the nation's energy security by promptly responding to fluctuations in national electricity demand. Moreover, the power plant is a smart power generation facility whose operations technologies incorporate IoT and big data, leading to enhanced capabilities and efficiency.
Overseas Power Plants
Indonesia By-Product Gas Power Plant
We completed the construction of Southeast Asia's first-ever by-product gas power plant in Indonesia in early 2014, which has been in operation since. The by-product gas power plant has a facility capacity of 200 MW and utilizes the by-product gas generated from POSCO Indonesia's integrated steel mill as fuel to produce electricity, contributing to an annual reduction of CO₂ emission.
| Plant Name | Indonesia By-Product Gas Power Plant |
| Location | Within the POSCO Integrated Steel Mill in Cilegon, Indonesia |
| Completed Construction In | January 2014 |
