Posco seeks to boost LNG imports

South Korean steel maker Posco is looking to boost its future LNG imports afer clinching first LNG import deal from Indonesia, a company?s executive said Thursday.

? Posco is planning to increase future LNG consumption as the business is expanding, but it is still too early to say when and at what volume,? Posco senior vice president Kwon Young Tae told Petromindo.Com prior to LNG contract signing in Bali.

Posco signed sales and purchase agreement (SPA) to import 550,000 tons of LNG per annum for 20 years from BP-operated Tangguh LNG on Thursday. First delivery is expected mid 2005.

Posco is currently building an LNG terminal in Gwangyang. The gas will be used at Posco?s two-gas powered power plants with total generating capacity of 845MW.

Industry sources said that Posco is preparing to become LNG distributor as soon as South Korean government liberalizes LNG distribution sector, which is currently monopolized by state-run gas distributor Kogas.

Posco?s LNG importation from Indonesia is the first sale of LNG to the private sector in South Korea. (alex)