POSCO International and Korea Southern Power Co. to boost domestic LNG bunkering

The event was attended by approximately 10 representatives from both companies, including Min Chang-ki, Head of POSCO International, and Park Young-cheol, Vice President of Korea Southern Power. This agreement will allow Korea Southern Power to receive domestic LNG bunkering services from POSCO International starting in 2027.

In line with the global trend toward carbon neutrality, demand for LNG, a low-emission energy source, is projected to exceed 20% of the total marine fuel market in the medium to long term. However, the domestic LNG bunkering business is still in its infancy, making full scale commercialisation and infrastructure expansion a pressing task.

Korea Southern Power Co., the first power generation company to introduce LNG-fuelled vessels, Nambu 1 and Nambu 2, has relied on overseas sources, including Singapore, for fuel since its maiden voyage in 2023 due to the declining competitiveness of domestic LNG bunkering. This process has resulted in unnecessary route changes and time losses, leading to a persistent need for a domestic LNG bunkering business.

This agreement represents a pioneering example of public-private collaboration to revitalise the domestic LNG bunkering industry and dramatically improve the efficiency of the energy procurement process. In particular, in the era of energy transition, this collaboration between the private and public sectors is expected to serve as a crucial stepping stone for Korea to emerge as a global LNG bunkering hub.

Chang-ki said: “With this business agreement as an opportunity, we will work closely with Korea Southern Power to create new standards for the energy industry across technology, logistics, and the supply chain. We will do our best to establish ourselves as a model case for the Korean energy industry by realising an eco-friendly ship fuel supply and a stable energy supply.”

Young-cheol added: “This agreement is a meaningful achievement that expands carbon neutrality beyond stable power generation to the fuel supply chain. We will continue to expand and strengthen cooperation that crosses the boundaries between the private and public sectors to achieve our carbon-neutrality goal.”

Read the article online at: https://www.lngindustry.com/small-scale-lng/18092025/posco-international-and-korea-southern-power-co-to-boost-domestic-lng-bunkering/