Seoul, South Korea | September 15, 2025 – In a landmark move aimed at transforming South Korea’s energy and maritime fuel landscape, POSCO International and Korea Southern Power Co., Ltd. (KOSPO) have signed a Memorandum of Understanding (MOU) to promote the domestic LNG bunkering business. The signing ceremony took place at the prestigious POSCO Center in Seoul, signaling a major step forward in establishing South Korea as a competitive LNG bunkering hub in Asia.
The agreement paves the way for Korea Southern Power to begin using POSCO International’s domestic LNG bunkering services starting in 2027, significantly reducing reliance on overseas fueling operations and establishing a cleaner, more efficient energy supply chain for LNG-powered vessels.
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Setting the Stage for a Cleaner Maritime Future
As the global shipping industry accelerates its transition toward carbon neutrality, Liquefied Natural Gas (LNG) has emerged as a crucial alternative fuel due to its significantly lower emissions compared to conventional marine fuels. Experts forecast that LNG could account for over 20% of the global marine fuel market in the medium to long term.
Despite the global momentum, South Korea’s domestic LNG bunkering industry remains in its infancy, with insufficient infrastructure and high operational costs leading to continued dependency on foreign supply hubs such as Singapore. Korea Southern Power’s LNG-powered vessels, Nambu 1 and Nambu 2—pioneers in South Korea’s energy-efficient shipping—have been forced to make long, uneconomical detours for refueling abroad since their launch in 2023.
Strategic Public-Private Partnership to Lead the Charge
The newly signed MOU marks a transformational public-private collaboration that seeks to change this paradigm. The event was attended by over ten senior representatives from both companies, including Min Chang-Kie, Head of POSCO International, and Park Young-Chul, Vice President of Korea Southern Power.
“Through this MOU, we will work closely with Korea Southern Power to set new standards for the energy industry across technology, logistics, and supply chains,” said Min Chang-Kie, Head of POSCO International. “We aim to establish a model case for South Korea’s energy industry, ensuring both environmental sustainability and energy security through stable and clean marine fuel supply.”
Park Young-Chul, Vice President of Korea Southern Power echoed the sentiment, emphasizing the broader implications for national carbon goals “This agreement is a meaningful achievement that extends our carbon neutrality efforts from power generation to the upstream fuel supply chain. We will continue to expand and deepen our collaboration beyond traditional boundaries to reach Korea’s net-zero objectives.”
POSCO International: Building a World-Class LNG Ecosystem
Following its 2023 merger with POSCO ENERGY, POSCO INTERNATIONAL has rapidly consolidated its position as South Korea’s foremost integrated LNG player. The company now manages the entire LNG value chain, including:
- Exploration & Production: Active operations in Myanmar and Australia
- Long-term Procurement: Contracts with North America’s Cheniere Energy
- Transportation: Operation of its own LNG carrier
- Storage & Terminals: Major expansion underway at the Gwangyang LNG Terminal, increasing storage capacity from 930,000㎘ to 1,330,000㎘
- Power Generation: LNG-based combined cycle power plants for efficient and sustainable energy
This vertically integrated model not only enhances energy reliability but also gives POSCO International a unique edge in LNG bunkering operations—combining technical capability, infrastructure, and fuel availability.
Korea Southern Power: Pioneering Green Maritime Operations
As South Korea’s first public power generation company to operate LNG-powered ships, Korea Southern Power has been at the forefront of decarbonizing maritime operations. By securing domestic LNG bunkering services through this partnership, KOSPO is positioning itself to lead the transition to low-emission maritime logistics, further reinforcing its commitment to environmental stewardship.
Paving the Way for South Korea’s LNG Bunkering Hub
The collaboration between these two industry giants is widely seen as a strategic inflection point for South Korea’s ambitions to become a major global LNG bunkering hub. By addressing key bottlenecks—such as lack of domestic supply points, infrastructure gaps, and high logistics costs—the partnership is expected to accelerate commercial-scale LNG bunkering operations nationwide.
Looking Ahead
The agreement between POSCO INTERNATIONAL and Korea Southern Power is more than just a business deal—it is a visionary alignment of energy policy, technological innovation, and environmental responsibility.
In an era defined by climate action and energy transition, the two companies are setting a benchmark for how public-private collaboration can fuel sustainable progress, reshape industry norms, and put South Korea on the map as a future leader in clean marine energy.
About POSCO International
POSCO International is a global energy and trading powerhouse at the forefront of the LNG value chain. Following its merger with POSCO ENERGY, the company has developed an expansive portfolio covering upstream (exploration & production), midstream (transportation & storage), and downstream (power generation) sectors. Committed to technological innovation and environmental responsibility, POSCO INTERNATIONAL is positioning itself as a global leader in sustainable energy and a key player in shaping the future of LNG.
Source POSCO International