Posco E&C beats Japan, Taiwan rivals to expand LNG footprint in Thailand

An LNG tank construction site operated by Posco E&C at the Map Ta Phut Industrial Estate in Rayong, Thailand. Multiple processes run simultaneously in front of the tank, including boil-off gas compression, vaporization and truck-loading facilities. [Hong Seung-hee]

"At this pace, the air-raising of the LNG tank roof — originally scheduled for March 17, 2027 — looks achievable before the end of this year. We are running about two and a half months ahead of schedule, and cases like this are almost unheard of overseas."

— Park Yeo-sik, general project manager, Energy Business Division, Posco E&C Plant Business Headquarters

박여식 포스코이앤씨 플랜트사업본부 에너지사업실 총괄 PM

In Rayong, a small fishing town in Thailand, the 35 Korean workers at an LNG tank construction site wore unmistakable pride on their faces. The project — building energy infrastructure on reclaimed coastal land — is a formidable undertaking, yet every stage from procurement and local permitting to construction has proceeded without a hitch, putting the team on track to finish ahead of the original schedule.

Surging LNG demand from data centers opens door for Posco E&C

The Map Ta Phut Industrial Estate in Rayong is Thailand's largest petrochemical cluster, comparable to South Korea's Ulsan and Yeosu. Six LNG tanks currently in operation there supply a quarter of Thailand's national energy needs. Posco E&C first entered the Thai market in 2002 and built two LNG tank facilities commissioned by state-owned PTT in 2017. For years, six tanks were sufficient to meet domestic LNG demand.

That changed sharply last year. A rapid expansion of data centers intensified power shortages and sent natural gas demand soaring. Thailand's top private-sector energy company, Gulf, responded by launching a major project to add two more LNG tanks — a contract worth 1.5 trillion won ($1.06 billion). Posco E&C emerged victorious from a fiercely competitive bidding process. The win means the company now handles four of Thailand's eight LNG terminals — exactly half — cementing its standing as a force in the global market.

Posco E&C is building two LNG tanks at the Map Ta Phut Industrial Estate in Rayong, Thailand, under a contract awarded by Thai private energy company Gulf. [Posco E&C]

The key to winning over the client was what the company calls "Korean-style EPC" — engineering, procurement and construction integrated under one roof. Park Yeo-sik, the project's general PM, said Posco E&C went head-to-head in competitive bidding against a consortium of Japanese and Taiwanese firms, and won. "The client chose us because of our unique Posco-model EPC — steel materials sourced from Posco, construction carried out by Posco E&C, and operations and maintenance expertise transferred by POSCO International," he said.

Particularly decisive was commissioning — the final and most technically demanding phase of completing an LNG terminal. Posco E&C is the only company in South Korea, and reportedly in the world, capable of performing commissioning entirely in-house without subcontracting. The Japanese and Taiwanese competitors had experience building LNG terminal facilities but none in commissioning. Posco E&C plans to work with POSCO International to transfer its commissioning methods — developed at the Gwangyang LNG terminal and other sites — directly to Gulf.

At the construction site, the outer walls of two LNG tanks — each roughly 1.5 kilometers in diameter, 700 meters tall and with a capacity of 250,000 tons — were rising steadily. Because of LNG's physical properties, the tanks must withstand temperatures as low as minus 160 degrees Celsius, making structural integrity paramount. Drawing on experience that includes seismic-isolation design for the Costa Norte LNG project in Panama and a standalone EPCC contract in the Dominican Republic, Posco E&C elevated each tank about one meter off the ground to prevent cold transfer to the reclaimed land beneath. The site also runs boil-off gas compression, vaporization and truck-loading processes simultaneously — a hallmark of the company's construction approach.

Progress is fast. With a total construction period of 45 months, roughly 25 percent completion would be on track — but the current rate stands at 29.4 percent, meaning the team is running two to three months ahead. The air-raising of the tank roofs is also expected to be brought forward by nearly three months. "Early on, we ran internal study sessions with the team to find every opportunity to shorten the schedule," Park said. "Getting ahead of schedule lets us focus more on safety and quality, and a satisfied client leads to the next contract."

An overview of the LNG tank construction site operated by Posco E&C at the Map Ta Phut Industrial Estate in Rayong, Thailand. [Posco E&C]

The Thai client has taken notice. Suppalerk Woraphankit, a manager at Gulf met at the site, said the two companies are already "one team." "Both the client and the contractor have to move together to get results — we will provide whatever support is needed, without reservation," he said.

Posco E&C's footprint in Thailand is expected to grow further. State-owned PTT is planning to commission two additional LNG tanks in the second half of this year, and Posco E&C — having built strong trust with local partners — intends to compete for that contract as well.

Beyond construction: investing in the community and restoring the local ecosystem

Students from Wat Takhuan school in Rayong, Thailand, take part in a mentoring program organized by Posco E&C, paired with Korean-language students from Burapha University. [Hong Seung-hee]

Another factor behind Posco E&C's deep integration into the local community is its corporate social responsibility work. The company has made a clear commitment to going beyond short-term construction and actively improving the quality of life for area residents.

As soon as the Rayong team set up its local office, it hired a dedicated local CSR manager — a deliberate move to build genuine, lasting ties with the surrounding community.

Among the most visible initiatives, Posco E&C is fully renovating aging facilities at Ban Nong Phaep and Wat Takhuan elementary schools in the Rayong area, replacing toilets and computers. In addition, 24 mentors — drawn from Korean-language students at nearby Burapha University and site staff — run a mentoring program for about 40 local children. For the initiative, Posco E&C is partnering with the Posco 1% Sharing Foundation, World Vision, the Korean Education Center in Thailand and other local specialist organizations.

The impact was visible on the ground. Nes, a student at Wat Takhuan elementary school, greeted visiting Posco staff and a reporter at a "CSR Partnership Day" event in Korean, saying "My dream is to become a doctor," and presented an AI-generated image of her future self. Korean-language students from Burapha University said the experience meant a great deal to them. "I really want to visit Korea someday," several said. "Being able to mentor local children here is truly meaningful."

The dilapidated toilets at Wat Takhuan elementary school in Rayong, Thailand, which Posco E&C plans to renovate. [Hong Seung-hee]

A Salvation Army representative working directly with the program explained the broader goal. "One child who originally dreamed of becoming a fisherman changed his dream to becoming an influential soldier after taking part in the CSR program," the representative said. "Because most residents in Rayong work in subsistence occupations, children here have limited exposure to diverse careers and life paths. The main purpose of this AI-based career exploration is to raise children's engagement in learning and broaden their sense of what is possible."

Posco E&C and Gulf also jointly carried out environmental restoration efforts for the Rayong fishing community — releasing 3 million juvenile fish into local waters and planting 1,000 mangrove trees. The initiatives were designed to support local residents' livelihoods by restoring the marine ecosystem they depend on for fishing and ecotourism.

hss@heraldcorp.com