Posco International to spend $780 million on energy this year

The amount is around double last year's spending and will be used to expand infrastructure and increase its production capacity of natural gas.

Production site of Senex Energy, an Australian-based natural gas subsidiary of Posco International [POSCO INTERNATIONAL]

Posco International will invest 1.03 trillion won ($780 million) in its energy business this year, the trading and energy company said Friday.

The amount is around double last year's spending and will be used to expand infrastructure and increase its natural gas production capacity.

Its liquefied natural gas (LNG) storage capacity will be upped 30 percent to 930,000 kiloliters. LNG produces around 40 percent less carbon dioxide than coal and 30 percent less than oil, which makes it the cleanest of the fossil fuels.

The annual production capacity of Senex Energy, its Australia-based natural gas producer, will grow threefold to 60 petajoules by 2025. The company earlier signed with eight customers including AGL, Australia’s largest power supplier, as well as steelmakers BlueScope and Liberty Steel, to supply natural gas amounting to 133 petajoules.

Posco International also plans to expand its EV motor core business and supply at least 7 million EVs by 2030. It has signed contracts to supply cores to 2.86 million units this year.

"We aim to strengthen our profit structure by expanding eco-friendly business and secure future growth engines," the company said.

The aggressive investment plan comes as the company reported 1.16 trillion won in operating profit last year, up 30 percent on-year. It was the first time its operating profit exceeded 1 trillion won.

Posco International merged with Posco Energy in January 2023.

BY SARAH CHEA [chea.sarah@joongang.co.kr]