POSCO Group christened its first liquefied natural gas carrier as the South Korean steelmaker doubles down on energy logistics while grappling with oversupplied steel markets.
The 174,000-cubic-meter vessel HL Fortuna, built by HD Hyundai Samho, will begin operations in the second half of 2025, making at least five annual round trips between Korea and the United States. Starting in 2026, it will transport LNG from Cheniere Energy’s Louisiana terminal under existing supply agreements.
The move represents POSCO International’s broader strategy to control more of its energy supply chain, from gas field production in Myanmar and Australia to import terminals and power generation. The company operates Korea’s largest private LNG terminal in Gwangyang and plans to expand its carrier fleet to support additional contracts, including a 700,000-ton deal with Mexico Pacific.
However, the timing raises questions about capital allocation as POSCO Holdings reported 1.3 trillion won ($975 million) in non-cash losses last year, including impairment charges from restructuring low-yield assets. The company’s shift toward energy infrastructure comes as steel demand remains sluggish and Chinese oversupply pressures margins.
POSCO International currently trades 2.12 million tons of LNG annually and aims to reach 3.57 million tons by 2025, though the volatile energy market presents execution risks for these ambitious expansion plans.
