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Posco is readying to expand steel supply for liquefied natural gas (LNG)-fuel tanks on expectations that global demand for environmentally-friendly vessels will increase rapidly next year.
A surge in demand for LNG is expected in the next five years.
Posco Research Institute forecast 130 trillion won worth of LNG-fueled vessels would be built globally in 2025, six times more than those that were built in 2020.
It also estimates about 2,500 to 3,000 vessel orders by 2029 and that 60 percent of constructed vessels in South Korea in 2013 would be LNG-fueled ships.
Among Posco's LNG fuel tank materials is 9 percent nickel steel, the most commonly sought steel grade for LNG fuel tanks, known to withstand even in a minus 163 degrees Celsius environment.
In early December, Posco supplied 9 percent nickel steel for the world’s first LNG-fueled bulk vessel built by Hyundai Samho Heavy Industries.
Posco's independently developed high-manganese steel has also emerged as a viable alternative to existing LNG fuel tank materials due to its competitive price.
