To Supply 8,000 Tons of Steel Pipes Next Year
SeAH Steel, POSCO and DKC will participate in the Kitimat Project as thick wall steel pipe suppliers.
The project is to build a natural gas liquefaction plant in Kitimat, Canada, procure natural gas from local gas fields and export it to Asia in the form of LNG. The size of the largest LNG development project in Canada amounts to US$14 billion and the three South Korean companies are scheduled to supply approximately 8,000 tons of thick wall steel pipes early next year.
The plant will be built in two stages. The first phase is for two LNG production facilities, each with a capacity of 6.5 million tons. The production capacity will be increased to 26 million tons in the second phase.
When it comes to the steel pipes, POSCO supplies thick stainless steel plates to DKC, DKC turns the plates into finished goods, and SeAH Steel produces the pipes from the finished goods and supplies the products to LNG Canada. The three companies already started the production in the first quarter.
The Korea Gas Corp. also participates in the project with a stake of 15 percent. The corporation is planning to import 700,000 tons of LNG from the plant in each of 2024 and 2025.