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Posco Daewoo Signs MoU with Brunei’s Oil Company on LNG Business

According to Pulse by Maeil Business News Korea,

Posco Daewoo Corp., the trading and energy development unit of South Korean steelmaker Posco, has joined hands with Brunei’s national oil company to develop liquefied natural gas (LNG) value chain solutions with hopes to expand business in the environmentally-friendly fuel sector.

Posco Daewoo said on Wednesday that it signed a memorandum of understanding (MoU) with Brunei National Petroleum Company Sdn Bhd (Petroleum Brunei) on LNG value chain business expansion. Petroleum Brunei is a national resources development company that promotes comprehensive energy business in the Southeast Asian country with abundant petroleum and gas.

LNG value chain development involves overall procedure from gas exploration and production to liquefaction, transportation, and sales. It encompasses overall development of related business sectors based on market demand rather than individual development.

Under the latest MoU, the two companies will promote joint exploration of mines in Brunei and other countries in the upstream sector and also cooperate in deep sea mine development currently under operations by Posco Daewoo. They will also review joint investment in infrastructure asset-related projects such as those involving LNG liquefaction and import terminals. The two companies will also share information on overall LNG value chain from LNG bunkering to supply.

Posco Daewoo has been putting out efforts to expand its LNG business from gas exploration to liquefaction and sales. LNG - which creates much less emissions - is considered an alternative energy to coal amid enhanced global environmental regulations.

The world’s demand for LNG is projected to reach 430 million tons in 2040, up 40 percent from 2017. In particular, demand is projected to increase significantly in the Asia Pacific region such as China and India.

By Kang Gye-man and Lee Eun-joo

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (November 28, 2018)

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