LNG

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.

The Japanese Ministry of Economy, Trade and Industry (METI) has opened its seventh LNG Producer-Consumer Conference in the city of Nagoya, marked by Japan initiating more cooperation with the US in the past year on LNG projects in Southeast Asia.