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SEOUL, April 15 (Yonhap) -- South Korea's largest steelmaker POSCO said Monday that it will reorganize its liquefied natural gas (LNG) operations as part of its efforts to enhance its business efficiency.
The company said in a regulatory filing that its board of directors last week approved the transfer of its LNG terminal in Gwangyang, 423 kilometers southeast of Seoul, to its power generation affiliate, POSCO Energy. It will, in exchange, take over the off-gas combined cycle power plant run by the energy affiliate.
The power plant uses excess gases, generated by the steel mills blast furnaces and coke oven, to create electric power.
The reorganization focuses on raising synergy between POSCO Daewoo, the steelmaker's resource development and trading arm, and POSCO Energy.
The move is part of POSCO's LNG mid-stream reorganization plan outlined in November by CEO Choi Jeong-woo.
At the time, the president stressed the need to restructure operations to strengthen mid-stream competitiveness going forward.
In the LNG industry, mid-stream refers to the process of liquefying and transporting the gas, while up-stream is centered on development and extraction, with down-stream covering the supply and sale of the refined energy resource to consumers.