Posco International and LX International said Wednesday that they have teamed up to complete a new massive LNG terminal in Dangjin, South Chungcheong Province, by 2027.

The two companies signed an agreement the same day with the city and provincial governments to expedite the project.

The Dangjin LNG Terminal will be located on a 193,000-square-meter site at a port in the city of Dangjin. The size is equivalent to about 27 soccer fields.

The terminal will consist of two 270,000-kiloliter storage tanks, two carburetors capable of processing 200 tons of LNG per hour and a dock for LNG carriers.

When completed, about 3.5 million tons of LNG is expected to be handled at the facility annually.

Posco International, which merged with Posco Energy earlier this year, aims to complete the whole value chain for its LNG business from exploration and production to storage and power generation.

The firm currently operates five 73,000-kiloliter LNG tanks at its Gwangyang LNG Terminal in South Jeolla Province, the nation’s first private-owned LNG terminal that was established in 2005.

It is building the sixth 200,000-kiloliter tank with plans for completion by 2024.

"This project will play a key role in completing the value chain for our energy business,” Posco International CEO Jeong said at the signing ceremony. “The terminal will also contribute to the local economy and the nation’s energy security.”