Posco and Hanwha Ocean partner to test high-manganese steel LNG cargo tanks
Posco signed an MOU with Hanwha Ocean to build a demo LNG carrier using its high-manganese steel for cargo tanks, aiming to broaden the material’s shipbuilding applications.
Posco announced a memorandum of understanding with Hanwha Ocean to develop and test liquefied natural gas carrier cargo tanks made from its proprietary high-manganese steel. The pact was formalised at Hanwha Ocean’s shipyard in Geoje, with CEOs Lee Hee-geun and Kim Hee-cheul present. Hanwha Ocean will build a demonstration vessel featuring the steel tanks, while Posco International and Posco Flow will assist in securing and operating the ship.
The alloy maintains strength and impact resistance at temperatures below minus 163 °C, positioning it as a cost-effective substitute for the nickel alloy Invar. An LNG carrier requires more than 10,000 metric tons of tank material, far exceeding the roughly 1,000 tons needed for fuel tanks, suggesting significant market potential. The companies also plan to extend the steel’s use to bunkering vessels, floating storage units, and eventually to hydrogen, ethane and ammonia transport.
Why it matters
The partnership could lower costs and boost competitiveness of Korean shipbuilding by introducing a new material for large LNG carriers.
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