POSCO Daewoo will carry out diverse LNG-related projects in partnership with PetroleumBRUNEI, a national oil company in Brunei, which is rich in oil and gas.
POSCO Daewoo announced on Nov. 28 that it has signed an MOU with PetroleumBRUNEI to look for and carry out projects throughout the LNG value chain.
An LNG value chain refers to the entire process from gas field exploration to liquifaction, transportation and sales. It consists of four main links – natural gas exploration and production; treatment and liquefaction; shipping; and receiving and distribution.
The two companies have agreed to jointly explore and develop gas fields in Brunei and other countries as well as the deep-sea gas fields under development by POSCO Daewoo.
They have also agreed to promote joint investment in infrastructure including LNG liquefaction and receiving terminals and look for projects through the entire value chain from LNG bunkering to LNG distribution.
Demand for LNG is expected to increase globally, especially in Asia-Pacific regions centered on China and India, as it is a clean energy source with low carbon dioxide emissions.
POSCO Daewoo said the MOU with PetroleumBRUNEI means that the company will target Asia-Pacific markets, including Korea, where demand is expected to increase in the future, and explore opportunities for infrastructure investment and LNG trading.
POSCO Daewoo president Kim Young-sang said that strategic cooperation between POSCO Daewoo, who has the best upstream LNG technology in Korea, and Petrolium Brunei, who has extensive energy-related experience, will create opportunities to expand businesses for both.
Recently, the POSCO Group announced that it will select LNG as an area of intensive growth at the group level and that POSCO Daewoo will take the lead in purchasing and trading LNG and developing overseas LNG infrastructure projects.
POSCO Daewoo started LNG trading last year and posted more than more than $200 million in sales this year.