Go to contents

Posco, ExxonMobil join hands to target LNG market

Posted October. 08, 2020 08:01,   

Updated October. 08, 2020 08:01


POSCO announced Wednesday that it will enhance its cooperation with ExxonMobile, a U.S. energy company, in “high manganese steel.”

With manganese content of 10 to 27 percent, high manganese steel is stronger and more resilient to wear than other steel types. It has been developed and patented by POSCO, and was approved by the South Korean Ministry of Trade, Industry and Energy last year to be used for in-ground storage tanks for LNG. High manganese steel was used for the first time to build the fifth LNG storage tank in Gwangyang, South Jeolla Province. POSCO and ExxonMobile signed a technical cooperation agreement on Wednesday in a conference call among POSCO research institute in Pohang, North Gyeongsang provincial government, and ExxonMobile offices in New Jersey and Texas.

Based on the agreement, the two companies will build storage tanks for large LNG projects using POSCO’s cryogenic high manganese steel. Posco and ExxonMobile worked together to create transferring pipes for oil sands from 2012 through 2017. Due to its high wear resistance, the high manganese transferring pipes do not require as much requirement, which drives down maintenance costs. It has also been proven that fewer outages have to be made with a shorter replacement cycle.

“Our cooperation is expected to continue in developing eco-friendly technologies such as to reduce CO2 as well as steel application technologies,” said Lee Deok-rak, chief of POSCO research institute.

Hyung-Seok Seo skytree08@donga.com