POSCO INTERNATIONAL signs LNG terminal and pipeline agreement with Korea Southern Power worth KRW 975 billion, securing long-term revenue stream
POSCO INTERNATIONAL has entered into a head of agreement with Korea Southern Power Co., Ltd. for the use of Gwangyang LNG terminal facilities and a direct pipeline to Hadong LNG combined cycle power plant.
The contract value is approximately KRW 975 billion excluding VAT, representing 3.0% of recent sales, with a contract period from July 2029 to December 2059, a long-term agreement of about 30 years.
The parties aim to sign a definitive contract by December 2026, and this HOA will remain in effect until then, providing POSCO INTERNATIONAL with a stable cash flow outlook from its LNG terminal business.
The counterparty, Korea Southern Power, a subsidiary of KEPCO, has high creditworthiness, reducing transaction risk.
[AI Summary]This contract secures a long-term revenue base for POSCO INTERNATIONAL's LNG infrastructure business, contributing to shareholder value. It is a positive factor creating new sales without capital changes and ensures transaction stability due to the state-owned counterparty.