POSCO International Secures US Gas Field for $550 Million LNG Play

POSCO International has agreed to acquire a North American gas field from Code Energy's subsidiary in the United States for $550 million. The acquisition price will be contributed to POSCO INTERNECHE E&P USA, a local holding company.

The asset includes 2,006 gas wells, with 1,305 producing wells and 701 development wells. Reserves are estimated at about 1.3 trillion cubic feet (Tcf), including 220 billion cubic feet (Bcf) of discovered contingent resources.

Hana Securities analyst Yoo Jae-seon said prices at the U.S. Henry Hub have remained weak throughout the year, making the acquisition possible at an attractive price. The asset is a 100% gas asset and has been in production since the first half of this year.

Yoo predicted that the annual operating profit after 2028 will be around 100 billion won. He also mentioned that the asset can be exported as liquefied natural gas (LNG) when linked with trading, making it a highly useful asset for POSCO International.