en.Wedoany.com Reported - Posco International has signed a Heads of Agreement (HoA) with Korea Southern Power Company (Kospo) for the use of LNG terminal facilities and a direct pipeline, with a contract value of approximately 975 billion won ($637 million). Under the agreement, Posco International will provide services to Kospo through the Gwangyang LNG terminal facilities and a direct pipeline from the terminal to the Hadong LNG combined cycle power plant. The contract period is from July 10, 2029, to December 31, 2059, but Posco International stated that the period may be changed by mutual agreement, depending on the construction progress of the counterparty's power plant.

Posco International stated that the contract amount is estimated based on the total usage fees for the terminal and direct pipeline during the contract period, excluding value-added tax. Both parties expressed their willingness to work together to sign a final agreement by December 31, 2026, to clarify the detailed terms and conditions of this Heads of Agreement. In 2024, Posco International completed the construction of its first Gwangyang LNG terminal in South Jeolla Province by adding a sixth storage tank. The terminal currently has a total of six storage tanks with a combined storage capacity of 930,000 cubic meters, along with one LPG storage tank, a jetty, and other regasification and auxiliary facilities. Posco International previously stated that the terminal took 20 years to build and involved an investment of 1.45 trillion won. This is not the first collaboration between Posco International and Kospo. Last year, the two companies jointly promoted domestic LNG bunkering operations. Under this public-private partnership agreement, Kospo can conduct LNG bunkering in South Korea through Posco International starting from 2027.

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