POSCO International Corp., the trading arm of South Korean steel giant POSCO Holdings Inc., is exploring an acquisition in the US natural gas terminal sector. The move, revealed during the company’s recent investor event, signals its intent to capitalize on America’s thriving gas industry.
The firm’s interest in terminal operations stems from their lower entry barriers compared to production or liquefaction. This strategy aligns with POSCO International’s broader ambition to penetrate various segments of the US natural gas value chain.
An official from the company confirmed early-stage talks but cautioned that any potential deal would take time to materialize. The US market’s appeal lies in its transformation into the world’s largest gas producer and exporter, driven by the shale boom.
POSCO International’s financial position appears robust, with projected operating profits of 1.2 trillion won ($871.1 million) this year, potentially fueling its expansion plans. The company has already made strides in the LNG sector, recently completing South Korea’s first privately-run LNG storage and regasification facility in Gwangyang.
As global demand for natural gas surges, driven partly by efforts to reduce reliance on dirtier fuels, POSCO International’s US venture could position it to capitalize on the growing export market.
