POSCO International to invest $2.67 billion in 3 years after POSCO Energy merger

An onshore gas field production facility in Australia operated by Senex Energy / Courtesy of POSCO International

By Kim Hyun-bin

POSCO International which is set to merge with POSCO Energy, unveiled a plan to invest 3.8 trillion won ($2.67 billion) by 2025 to become a global energy company, during a company shareholders’ meeting, which was held on Friday.

POSCO International held a shareholders’ meeting at the POSCO Center in Incheon and announced that it would invest 3.8 trillion won from next year to 2025 to secure a liquefied natural gas (LNG) value chain.

Specifically, 1.6 trillion won will be invested in the construction of a liquefied natural gas (LNG) terminal. Funds will be used to build the Gwangyang one and two LNG terminals, the Dangjin LNG terminal and North American liquefaction plants.

Next, it will invest 1.3 trillion won to expand natural gas production in order to develop an onshore block of Australia’s Senex Energy, which it acquired this year, to develop a Mahar gas field in Myanmar and to start new rounds of exploration in Southeast Asia. Next, 700 billion won and 200 billion won will be invested in LNG power generation and eco-friendly energy, respectively.

The company plans to invest with its own generated funds. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) in the first half of this year were around 1.5 trillion won, which means it has enough cash to invest. It also announced a plan to triple its market cap by 2030 to enhance shareholder value, which has risen to 13 trillion won.

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