Singapore, 1 October (Argus) — South Korean conglomerate Posco Group’s trading arm Posco International and logistics unit Posco Flow have partnered with the Yeosu Gwangyang Port Authority to develop LNG bunkering facilities, Posco announced on 30 September.
Under the agreement, LNG bunkering infrastructure will be built within the Yeosu Gwangyang port area and the three firms will collaborate to establish a system which covers the lifecycle of LNG bunkering vessels by tapping on each firm’s expertise, Posco said.
Posco plans to complete the construction of the bunkering pier at Gwangyang terminal 2 by the third quarter of 2026 and plans to launch LNG bunkering services in May 2027. Once the Gwangyang LNG 2 terminal is completed, it will be South Korea’s largest LNG storage infrastructure with a combined capacity of 1.33mn kiloliters across terminals 1 and 2.
Posco International will be responsible for the LNG procurement process, from sourcing to bunkering, at the Gwangyang LNG 2 terminal once operations begin in 2026. Yeosu Gwangyang Port Authority, as the port operator, will provide policy support and be responsible for safety reviews. Posco Flow, as an integrated logistics company, will build and operate the 12,500m³ Class 3 LNG bunkering vessel which is scheduled for delivery in 2027.
This collaboration comes as LNG bunkering gains traction as a cleaner alternative to achieve the International Maritime Organization’s 2030 targets. The number of LNG-fuelled vessels is expected to more than double from 354 at the end of 2022 to 778 by 2027, Posco said. This growth will consequently drive the demand for LNG bunkering services, the firm added.
By Joey Chan
