Steel for Energy Industry
POSCO supplied 100% of the thick plates used in Shell’s FLNG project won by Samsung Heavy Industries.
The steelmaker announced on November 12 that it completed the supply of 27 types of 150,000 tons of thick plates through the past 14 months for Shell’s project to develop the Prelude Gas Field located in northwestern Australia. The amount, worth 120 billion won (US$112 million) combined, is equivalent to 58% of the total steel goods required for the structures.
Shell’s FLNG Project is to build the world’s first LNG drilling, production, and storage facilities. It was won by Samsung Heavy Industries three years ago at a cost of US$3 billion. The mega-scale offshore plant has a length of 468m, a width of 74m and a height of 100m. It is capable of storing 450,000m3 of LNG, equivalent to three days of consumption in Korea, and producing 3.5 million tons of LNG a year.
Until recently, only a handful of European and Japanese steelmakers have dominated the global market of steel for the energy industry. However, POSCO is increasing its market share at a rapid pace by successfully completing a number of projects worldwide.
The company has developed 23 types of steel goods up to this moment, and is planning to work on 60 more types for the energy industry down the road. It is planning to raise its market share to at least 10% by 2020.