South Korea’s top steelmaker Posco has established a subsidiary to operate a synthetic natural gas (SNG) business that is planning extend operations to Mongolia. The subsidiary, named POSCO Green Gas Technology, was established in Posco’s Gwangyang complex on the country’s southern coast, where it is building an SNG plant with a capacity of 500,000 metric tons a year.
Posco has an agreement with the MCS Group to establish a 50-50 joint venture to build an SNG plant in Mongolia. The two companies are aiming to complete financing by the end of this year and start work on the plant with a target date for bringing it online of the end of 2018.