Korean LNG expansion
May 27 (LNGJ) - South Korean project company GS Engineering and Construction is advancing with plans to build an LNG import terminal in the southwestern city of Yeosu in South Jeolla Province, which would be Korea’s eighth import facility. GS Engineering estimates the terminal will cost around 600 billion South Korean won ($440M) and will have two LNG storage tanks, each with a capacity of 200,000 cubic metres as well as auxiliary facilities and port infrastructure.
The company added that once completed by around 2028, the terminal would supply regasified LNG to industrial companies and power plants at the national industrial complex at Yeosu. The oldest Korean terminal was completed in 1986 at Pyeong-Taek, followed by an expanded network comprising Incheon (1996), Tong-Yeong (2002), Gwangyang (2005), Samcheok (2014), Boryyeong (2016) and Jeju (2019).
Korea Electric Power and Korea Gas still carrying high debt levels though falling LNG prices brings some relief
The largest South Korean power and natural gas companies with liquefied natural gas commitments including imports and purchases have seen their current debts staying at high levels because of last year’s higher commodity prices and increasing interest rates.
South Korean LNG imports are steady as storage increases and deliveries set to match the levels of last year
The South Korean government said that liquefied natural gas imports have remained steady and measures were being taken to boost storage for the winter because of continued global geopolitical uncertainties.
ExxonMobil research units and Korean group POSCO to cooperate on LNG and energy storage studies
South Korean steelmaker, LNG importer and trading company POSCO has formed a venture with research subsidiaries of US oil and gas major ExxonMobil to apply high-manganese steel to storage tanks for use in LNG and energy applications.
POSCO signed the accord with ExxonMobil's Research Engineering Company (RE) and ExxonMobil Upstream Research Company (URC) during an online ceremonyThe Korean group and the two ExxonMobil research units have agreed to make joint efforts to expand high-manganese steel's applications to global LNG projects and other energy-related sectors.
ExxonMobil RE is in charge of basic research for materials for the US company and ExxonMobil URC is responsible for new material applications in existing facilities.
Manganese steel refers to steel alloy containing 10 percent to 27 percent manganese to improve durability, strength and cryogenic toughness.
Due to its strength, the material is designed to be applied to cryogenic LNG and fuel tanks.
POSCO developed its high-manganese steel in 2013, containing 22.5 percent to 25.5 percent of manganese and it is capable of withstanding temperatures as low as minus 196 degrees Celsius.
The Korean group believes it is the world's first company to develop high-manganese steel for commercial use.
POSCO won government approval for using high-manganese steel for land-based LNG tanks and applied the material to LNG storage Tank No. 5 at POSCO Energy's LNG import terminal at Kwangyang in Korea’s southern Jeolla province.
The Kwangyang LNG terminal was Korea's first import facility not controlled by state-run Korea Gas Corp. when it opened in 2005 and currently has 530,000 cubic metres of storage.
The International Maritime Organization's Maritime Safety Committee has approved interim guidelines on applying POSCO's high-manganese steel in cryogenic LNG storage and fuel tanks.“This cooperation and commitment to long-term, strategic technology development combines ExxonMobil's expertise in metallurgy application with POSCO's expertise in world-class, high-quality steel manufacturing,” said ExxonMobil URC President Tristan Aspray.
The head of POSCO’s Technical Research Laboratories, Lee Duk-lak, said he was delighted with the cooperation venture.
“Along with steel alloy and its related technologies, we hope POSCO and ExxonMobil advance their work on reducing carbon-dioxide emissions and on other eco-friendly technologies,” said Lee.
POSCO said that this was not the first time that the Korea steel company and trader had teamed up with ExxonMobil on developing new materials.
In 2017, the two sides jointly developed high-manganese steel for pipelines carrying oil sand slurry.
“The energy dual challenge, supplying energy for modern life while minimizing the impact on the environment, is one of the most important issues facing society,” said ExxonMobil RE Vice President Vijay Swarup.
