LNG

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.

Air Liquide Engineering & Construction, a unit of France's industrial gases company, has signed a new contract with LNG importer, the POSCO Group and the leading steel producer in South Korea, to design and build an Air Separation Unit (ASU) at Pohang.