POSCO International and Korea Southern Power Sign MoU on Domestic LNG Bunkering

POSCO International and Korea Southern Power have signed a Memorandum of Understanding (MoU) to advance domestic LNG bunkering services, with operations expected to begin in 2027.

Korea Southern Power, which introduced LNG fueled vessels Nambu 1 and Nambu 2 in 2023, has until now sourced fuel from overseas locations, including Singapore, due to limited competitiveness of the domestic market. According to POSCO, this reliance on foreign supply created “unnecessary detours and time losses,” reinforcing the need for a local bunkering business supported by infrastructure expansion and commercialization.

The companies said the agreement marks a public private collaboration designed to strengthen the efficiency of energy procurement while laying the groundwork for South Korea to position itself as a global LNG bunkering hub.

Min Chang Kie, Head of POSCO International, said: “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. 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.”

Park Young Chul, Vice President of Korea Southern Power, added: “This agreement is a meaningful achievement that extends carbon neutrality from stable power production to the fuel supply chain. We will continue to expand and strengthen collaboration beyond the boundaries of public and private sectors to achieve carbon neutrality goals.”

POSCO International has strengthened its LNG capabilities since its merger with POSCO Energy in 2023, integrating activities across exploration, production, transportation, storage, and power generation. The company operates gas fields in Myanmar and Australia, holds long term supply contracts with US based Cheniere Energy, and manages its own LNG carrier.

At the Gwangyang LNG Terminal, built in 2024, POSCO International is investing to expand storage capacity from 930,000 cubic meters to 1,330,000 cubic meters.