Posco Begins Construction of Synthetic Natural Gas Plant

June 7 (Bloomberg) -- Posco, 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.