Posco Begins Construction of Synthetic Natural Gas Plant

Posco (005490), South Korea’s largest steelmaker, began construction of a synthetic natural gas plant in South Jeolla province to reduce fuel costs.

The plant will use a high pressure, high temperature process to produce 500,000 metric tons of gas a year from coal when it is completed by the end of 2013, the Pohang, South Korea-based company said in an e-mailed statement today.

Posco forecast the plant will save 150 billion won ($139 million) in power generation costs per year, according to the statement.

To contact the reporter on this story: Sangim Han at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.