Doosan Enerbility Co. secured a 560 billion won ($410 million) contract from Korea Gas Corp. to construct three liquefied natural gas storage tanks at the Dangjin terminal, marking the second phase of a project that questions South Korea’s infrastructure priorities as domestic LNG demand continues declining.
The engineering firm will build tanks 5-7 at the facility in South Chungcheong Province, with construction beginning in September and scheduled completion by December 2029. Each tank will hold 270,000 kiloliters of LNG, matching the capacity of the four tanks Doosan constructed in the first phase under a separate 610 billion won contract awarded in 2021.
The contract award comes as South Korea faces mounting criticism over potential overinvestment in LNG infrastructure. The country’s gas consumption fell 5% in 2023, and government projections indicate LNG’s share in the power mix will drop from 27% to 11% by 2038 as part of decarbonization efforts.
At least four major LNG terminal projects worth 11 million tonnes of annual capacity have been cancelled or delayed since early 2024 due to weak demand fundamentals and rising costs. Current LNG terminal utilization rates already rank among the world’s lowest at under 30%.
The Dangjin facility represents Korea Gas Corp.’s strategy to consolidate import infrastructure even as private developers abandon similar projects across the country.
