South Korean trading firm POSCO International and utility firm Korea Southern Power have signed an agreement to advance South Korea’s domestic LNG bunkering, with services set to begin in 2027.

The agreement will allow Korea Southern Power to refuel its LNG-powered fleet locally through POSCO, rather than relying on overseas hubs such as Singapore, POSCO International said in a statement on its website on Thursday.  

The companies said this will lower costs, shorten voyage times, and provide a more reliable supply chain.

They noted that South Korea’s LNG bunkering market remains in its infancy, requiring faster commercialisation and infrastructure growth.

Korea Southern Power’s first LNG vessels, Nambu 1 and Nambu 2, have since 2023 relied on bunkering in Singapore.

With LNG expected to make up more than 20% of global marine fuel demand over the medium to long term, the partnership is intended to position the country as a competitive player in the emerging sector.