- Secures domestic bunkering services to supply Korea Southern Power’s LNG-powered vessels starting in 2027
- Demonstrates a leading example by improving the efficiency of the energy procurement process through public-private collaboration
On the 15th, POSCO INTERNATIONAL (CEO Lee Kye-In) and Korea Southern Power (CEO Kim Jun-Dong) signed a memorandum of understanding (MOU) at the POSCO Center in Seoul to promote the ‘domestic LNG bunkering business.’*
* LNG Bunkering: The process of supplying LNG used as propulsion fuel for ships
The event was attended by more than 10 representatives from both companies, including Min Chang-Kie, Head of POSCO INTERNATIONAL, and Park Young-Chul, Vice President of Korea Southern Power. Through this MOU, Korea Southern Power will be able to utilize POSCO INTERNATIONAL’s domestic LNG bunkering services starting in 2027.
Driven by the global shift toward carbon neutrality, demand for LNG, an energy source with low emissions, is expected to account for more than 20% of the global ship fuel market in the medium to long term. However, the domestic LNG bunkering business remains in its early stages, with an urgent need for full-scale commercialization and infrastructure expansion.
As the first public power company to introduce LNG-powered vessels, ‘Nambu 1’ and ‘Nambu 2’, Korea Southern Power has been sourcing fuel from overseas, including Singapore, since their maiden voyage in 2023, due to the low competitiveness of domestic LNG bunkering. This has resulted in unnecessary detours and time losses, underscoring the need to establish a viable domestic LNG bunkering business.
This MOU is significant as a leading example of public-private collaboration to drive the domestic LNG bunkering business and significantly enhance the efficiency of the energy procurement process. In particular, this public-private collaboration is expected to serve as a crucial foundation for positioning South Korea as a global LNG bunkering hub in the era of energy transition.
“Through this MOU, we will work closely with Korea Southern Power to set new standards for the energy industry across technology, logistics, and supply chains,” Min Chang-Kie, Head of POSCO INTERNATIONAL, stated. “We will make every effort to establish a model case for South Korea’s energy industry by ensuring an environmentally friendly supply of ship fuel and stable procurement of energy.”
“This agreement is a meaningful achievement that extends carbon neutrality from stable power production to the fuel supply chain,” Park Young-Chul, Vice President of Korea Southern Power, said. “We will continue to expand and strengthen collaboration beyond the boundaries of public and private sectors to achieve carbon neutrality goals.”
POSCO INTERNATIONAL has secured competitiveness by vertically integrating the LNG value chain—from exploration and production to transportation, storage, and power generation—through its merger with POSCO Energy in 2023. The company has established a stable procurement system via gas field operations in Myanmar and Australia, long-term contracts with North America’s Cheniere Energy, and the operation of its own LNG carrier. The Gwangyang LNG Terminal is undergoing large-scale investment to expand storage capacity from 930,000 ㎘ to 1,330,000 ㎘, further cementing the company’s role as a key player in South Korea’s energy supply chain.
