POSCO closer to supplying steel for LNG tanks to ExxonMobil

POSCO, the world’s sixth-largest steelmaker, took a step forward to supply global energy major ExxonMobil with steel for liquefied natural gas storage tanks.

South Korea’s top steel manufacturer said on Wednesday it has won technical approval from the US energy producer for its high manganese steel that contains up to 30% manganese to improve performance, such as high strength, low-temperature toughness, wear resistance, and non-magnetic properties.

POSCO has been working for the technical qualification since July 2020 to supply the steel material for ExxonMobil’s projects to build eco-friendly LNG terminals around the world. The approval is expected to speed up talks for a supply deal.

“We hope this approval will lead to the supply for global projects, helping the two companies create another success story,” said Choo Se-don, head of POSCO Technical Research Laboratories.

The high manganese steel, which POSCO developed in 2013 for the first time in the global industry, maintains toughness and strength even at temperatures below minus 162 degrees Celsius needed to keep LNG liquid.

The steel, which can be mass produced, is inexpensive, drawing attention from the global plant industry due to the recent surge in raw material prices amid the supply chain disruption worldwide.

Write to Ik-Hwan Kim at lovepen@hankyung.com
Jongwoo Cheon edited this article.