South Korean steelmaker Posco plans to expand its special steel supply for LNG vessel fuel tanks as it expects a surge in demand for environmentally-friendly vessels starting from 2021, according to media reports.
The fuel tanks for LNG vessels are built with special steel as they store ultra-low temperature LNG. Governments across the globe have tightened regulations to push the use of environment-friendly vessels. Hence, the company is focusing on expanding the supply of 9pc nickel steel and high manganese steel used in LNG fuel tanks.
Posco Research Institute said that a total of LNG-fueled vessels worth $119.8bn are expected to be built globally in 2025. The institute also estimated that there will be about 2,500 to 3,000 vessel orders by 2029 and by 2030 and 60pc of constructed vessels in South Korea would be LNG-fueled ships.
Earlier, Posco supplied 9pc nickel steel for the world’s first LNG-fueled bulk vessel built by Hyundai Samho Heavy Industries.
In 2018, the company had also signed a memorandum of understanding with Korea’s Ministry of Maritime Affairs and Fisheries, H-Line Shipping, and Korea Gas Corporation to supply fuel tank materials for green LNG-fueled ships.