POSCO Holdings announced on the 14th that it will supply HIC certified steel for the expansion project of the Fadhili gas plant by Saudi state-owned company Aramco. This is the first time that POSCO will supply HIC steel to the Aramco plant.
The Fadhili expansion project is a large energy infrastructure expansion project aimed at increasing the throughput of Aramco's existing gas plant by approximately 60%.
The steel supplied by POSCO is a type of steel with resistance to hydrogen induced cracking. It is suitable for harsh environments, such as energy pipes and tubes used in oil and gas.
In particular, the HIC steel for the plant required by Aramco has traditionally been exclusively supplied by European steelmakers after undergoing higher-level HIC testing and quality certification procedures than international standards (NAE TM0284).
Currently, only nine steel corporations, including POSCO, have received Aramco certification. POSCO expects that this supply will expand its dominance in the high-value energy steel market.
Initially, European corporations were considered for the manufacturing of piping and pressure vessels for the Fadhili project, but as POSCO supplied the steel, the manufacturers were changed to domestic companies.
The technological competitiveness of the downstream industry has led to new supply opportunities for the upstream industry. Piping is being produced by Hyundai Steel Pipe and SeAH Steel, pressure vessels by Bumhan Mecatec, and fittings by TAE KWANG CORPORATION.