POSCO Int'l to directly operate LNG-dedicated carrier

POSCO International Corp., the general trading and energy exploration unit of South Korea’s steel giant POSCO Holdings Inc., announced on Wednesday that it has secured a liquefied natural gas (LNG)-dedicated vessel for direct utilization in its operations.

POSCO International has entered into a long-term charter agreement for a 174,000-cubic-meter (CBM) capacity dedicated vessel with H-Line Shipping Co. Ltd.

The vessel, to be constructed by Hyundai Samho Heavy Industries starting in Oct. this year, is scheduled for delivery to POSCO International in the first half of 2025.

The 174,000-CBM LNG carrier that POSCO International plans to introduce will have the capacity to transport an amount of natural gas that can power the entire country for half a day.

The company intends to initially utilize the newly introduced LNG-dedicated vessel for its existing trading gas procurement. From 2026 to 2046, it will also utilize the vessel for transporting 400,000 tons of North American shale gas annually for domestic supply and trading purposes.

In addition, the company explained that it plans to pursue the acquisition of additional LNG-dedicated vessels as part of its full-scale entry into the foreign-controlled LNG business.

Currently, there are 34 LNG-dedicated vessels in South Korea, most of which are operated by the state-run Korea Gas Corporation, while among private LNG companies, SK E&S runs dedicated vessels.

"With the signing of a long-term charter agreement for an LNG carrier, we have laid the foundation to strengthen LNG procurement and trading capabilities, enabling us to maximize synergies and complete the LNG value chain," said a POSCO International official.

Write to Mi-Sun Kang at misunny@hankyung.com