Posco transfers LNG assets to improve efficiencyPosco, Korea’s largest steelmaker, said Monday that it will reorganize its liquefied natural gas (LNG) operations as part of its efforts to enhance business efficiency.
The company said in a regulatory filing that its board of directors last week approved the transfer of its LNG terminal in Gwangyang, South Jeolla, to its power generation affiliate, Posco Energy. It will, in exchange, take over an off-gas combined cycle power plant run by the energy affiliate.
The power plant uses excess gases, generated by the steel mills blast furnaces and coke oven, to create electric power.
The reorganization focuses on raising synergy between Posco Daewoo, the steelmaker’s resource development and trading arm, and Posco Energy.
The move is part of Posco’s LNG mid-stream reorganization plan outlined in November by CEO Choi Jeong-woo.
At the time, Choi stressed the need to restructure operations to strengthen mid-stream competitiveness going forward.
In the LNG industry, mid-stream refers to the process of liquefying and transporting the gas, while up-stream is centered on development and extraction.