Posco International to spend $2.7 billion to become a major LNG player

Posco International plans to invest 3.8 trillion won ($2.7 billion) in the next three years to strengthen its liquefied natural gas network as it received approval from shareholders to merge with Posco Energy Co. to become a major player in the global green energy market.

Shareholders approved Posco International’s plan to merge with Posco Energy at a meeting Friday. Posco Energy is an unlisted company that operates LNG terminal in Gwanyang, south of Seoul, and has businesses in renewable energy. The two companies are part of Posco Group, which owns the country’s biggest steelmaker.

Of the total investment, 1.3 trillion won will spend on exploring and developing LNG offshore fields in Myanmar and other Southeast Asia region, the company said in a regulatory statement. Another 1.6 trillion won on building five LNG storage tanks in South Korea and North America, 700 billion won to add more power plants fueled by LNG in the domestic market. It will also spend 200 billion won on renewable energy such as wind and solar power.

Posco International expects earnings before interest, taxes, depreciation and amortization to triple to 3.6 trillion won by 2030 from 1.2 trillion won in 2021 after its merger with Posco Energy.

Posco International shares jumped 5.57 percent to 22,750 won on Friday.

By Kyunghee Park