South Korea is taking a major step toward strengthening its domestic LNG bunkering capabilities through a Memorandum of Understanding (MoU) between POSCO International and Korea Southern Power (KOSPO). This agreement, set to take effect in 2027, marks a significant milestone in reducing dependence on overseas fuel supply and advancing the nation’s carbon neutrality goals.
Building a Competitive Domestic LNG Bunkering Industry
Until now, KOSPO’s LNG-powered vessels, Nambu 1 and Nambu 2, have relied on international suppliers such as Singapore due to limited domestic competitiveness. This dependence resulted in longer routes and delays, highlighting the need for a robust local supply chain. Through this MoU, both parties aim to commercialize domestic LNG bunkering and expand infrastructure, ensuring South Korea is positioned as a global LNG hub during the energy transition.
Strengthening Public-Private Partnerships for Carbon Neutrality
POSCO International and KOSPO emphasize the role of collaboration in driving innovation across logistics, technology, and energy supply chains. The partnership not only ensures stable procurement and environmentally friendly ship fuel but also extends carbon neutrality efforts beyond power generation into the broader fuel supply chain. Large-scale investments, including the expansion of Gwangyang LNG Terminal’s capacity, further reflect South Korea’s long-term strategy of securing energy stability and sustainability.
The POSCO-KOSPO MoU represents more than a fuel supply agreement—it is a model of public-private synergy that aligns with global energy transition goals. By reducing reliance on foreign LNG bunkering, South Korea is moving closer to becoming a world leader in clean, efficient, and sustainable marine fuel solutions.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: OFFSHORE ENERGY
