LNG

JERA Co. Inc., the largest Japanese liquefied natural gas buyer, and Korea Gas Corp. (Kogas), its counterpart in South Korea, have signed an accord to cooperate in the LNG business.

POSCO International, the energy unit of the South Korean steel-producing and industrial group, has joined with Indonesian state-owned oil and gas company PT Pertamina to win the exploration and production licence for the Bunga gas block offshore Java as Korea's LNG import facilities are expanding.

“A consortium involving POSCO International and Indonesian state-owned PT Pertamina Hulu Energy (PHE) obtained the rights from the Indonesian government to explore the Bunga natural gas block off the eastern Java Island,” said POSCO in a statement.

The two will each own a 50 percent stake in the project and POSCO International will be the operator.

POSCO explained that the award followed a joint study of the 8,500 square kilometres Bunga block with Pertamina Hulu Energi, a 100 percent subsidiary of Pertamina.

The Korean company is expected to direct any natural gas resources to possible LNG export possibilities.

Imports

POSCO International, which was newly branded as a company after the merger with POSCO Energy, noted that it is the only energy company in Korea that has an LNG value chain from exploration to production, storage and power generation.

It also has natural gas interests in Myanmar and Australia and has been carrying out gas exploration offshore Malaysia since 2021.

POSCO has firm plans to increase LNG imports and held a ground-breaking ceremony at the end of January 2023 for a planned new import facility near the site of the existing Gwangyang facility in South Jeolla province.

The company plans to invest 930 billion Korean won ($757 million) to build the terminal with two LNG storage tanks, each with 200,000 cubic metres capacity, to provide power for the steel mills and more electricity for the region.

In addition to the existing Gwangyang terminal, Korea has six other facilities at Boryeong, Incheon, Jeju, Pyeongtaek, Samcheok and Tong-Yeong.

POSCO said it regarded the new terminal as “another growth engine for Korean industry at Gwangyang” where the first LNG facility started operations in 2005.

POSCO International, the energy subsidiary of South Korean steel company POSCO, has held a ground-breaking ceremony for a planned new LNG terminal near the site of the existing Gwangyang facility in South Jeolla province.

Senex Energy, a leading coal-seam gas company controlled by South Korea’s POSCO International in the onshore Surat Basin of Queensland and which is part of the Gladstone LNG upstream supply chain, said it would have to suspend its A$1 billion (US$670 million) investment plan because of the Australian government gas price cap and market interference.

May 25 (LNGJ) - Cheniere Energy has entered into an LNG sales agreement with a subsidiary of South Korean steel and energy company POSCO Holdings. Under the deal POSCO has agreed to buy 400,000 tonnes per annum on a free-on-board basis from Cheniere Marketing for a period of 20 years.

The volumes will come from Cheniere’s planned expansion of the Corpus Christi export plant in Texas and would commence in 2026. The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee. “We are pleased to enter into this long-term LNG contract with POSCO, a key player in the global industrial complex, and we look forward to a successful, long-term relationship,” stated Cheniere President and Chief Executive Jack Fusco.

Senex Energy, the Australian coal-seam gas company in Queensland with an stake in Gladstone LNG, has entered into a binding with agreement with South Korea’s POSCO International for a cash offer price of A$4.60 per share.

Australian coal-seam gas producer Senex Energy said it had received an A$815 million (US$605M) takeover proposal from POSCO International Corp., the South Korea industrial company, seeking to secure LNG imports.