Last month, POSCO International signed a preliminary agreement with U.S. company Glenfarne for LNG importation, making the participation of domestic companies in the Alaska LNG project more visible and increasing interest in the LNG plant construction sector.

Liquefied Natural Gas (LNG) combined cycle power generation is classified as an eco-friendly energy source because it has significantly lower carbon emissions compared to traditional power fuels like coal or oil. The primary advantage is that LNG is first combusted in a gas turbine to generate electricity, and then the high-temperature, high-pressure steam produced in a boiler is used to drive a steam turbine to generate electricity again, producing high-efficiency, eco-friendly energy.

Accordingly, LNG power generation is considered a necessary bridge energy in the transition from traditional coal and oil-based power to renewable energy. With the power demand of data centers increasing rapidly in the AI era, global demand is also expected to continue growing.

Particularly, the Russia-Ukraine war led to the suspension of Russian natural gas exports through pipelines connected to Europe, causing a global surge in energy prices and highlighting the importance of energy security that can overcome geopolitical factors, further anticipating the growth of the LNG market.

As the world's third-largest LNG importer, South Korea places high importance on energy security. LNG, commonly used in both industry and households, has become an indispensable energy source, increasing interest in the LNG plant construction sector.

Daewoo E&C holds a unique track record among domestic construction companies in the liquefaction plant sector, considered a core part of the LNG value chain.

The most significant reason Daewoo E&C gained attention in the LNG field was its participation as the first domestic main contractor in the NLNG Train 7 construction project, a liquefaction facility in Nigeria. Located on Bonny Island, the NLNG Train 7 consists of liquefaction plants and export facilities, and securing the EPC main contractor status, previously dominated by global construction companies, confirmed its competitiveness in the global LNG market.

The LNG liquefaction plant EPC business has been monopolized by a cartel of seven companies: Bechtel, McDermott, and KBR from the U.S.; JGC and Chiyoda from Japan; Saipem from Italy; and Technip Energies from France.

Daewoo E&C's entry into this global cartel was facilitated by the NLNG Train 7 project, where it participated as one of the main contractors with a 40% stake in the total construction cost of KRW 5.2 trillion, bringing a new dynamic to the global LNG construction market.

Notably, Daewoo E&C has demonstrated global competitiveness in the construction of liquefaction plants and regasification and storage facilities, with a track record of building 11 liquefaction plants worldwide, including the Sakhalin LNG liquefaction plant in Russia, Algeria, Papua New Guinea, Indonesia, and Nigeria. This positions the company well for potential future contracts in this field.

Daewoo E&C has resumed its LNG plant project in Mozambique, Africa, pioneering new markets. The company plans to enhance its competitiveness in the LNG sector by pursuing additional LNG project contracts in Africa, Papua New Guinea, and the Middle East, aligning with the growth of the global LNG business.

This technological expertise and experience make Daewoo E&C the most likely domestic construction company to participate in the construction of production facilities and liquefaction terminals in the U.S. Alaska LNG project, where domestic companies' involvement is being discussed.

A Daewoo E&C representative stated, "The growth of the LNG business, noted as an eco-friendly and bridge energy source, will be a significant opportunity for Daewoo E&C, which holds the greatest competitiveness in related construction projects," adding, "We aim to establish ourselves as a global construction company based on the technology and experience accumulated in global LNG construction projects."

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