The Fadhili expansion project stands out as a large-scale energy infrastructure investment aimed at increasing the existing facility's gas processing capacity by approximately 1.6 times.
The HIC-resistant steel supplied by POSCO is designed to provide resistance against hydrogen-induced cracking and is specifically produced for energy applications in the oil and gas sector, such as pipelines and pressure vessel materials used under harsh conditions.
Energy steel is divided into two main categories based on its application: plant equipment used for energy production and extraction, and pipelines used for transportation. This project marks the first time HIC-resistant steel has been supplied for use in energy production facilities.
The HIC-resistant steel requested by Aramco for its facility applications undergoes testing and quality certification processes that exceed international standards (NACE TM0284). Until now, only European manufacturers could supply steel of this quality. However, POSCO, one of only nine manufacturers approved by Aramco, has increased both its technological strength and its influence in the high value-added energy steel market with this supply.
In addition, the steel supplied by POSCO was processed by South Korean pipe, pressure vessel, and connection piece manufacturers and converted into final products. This strengthened the competitiveness of South Korea's plant industry and enabled Korean manufacturers to replace European companies that had been considered for pipe and vessel production in the initial phase of the project. As a result, the technological capabilities of the downstream sectors created new supply opportunities for the upstream sectors. Currently, pipes are produced by Hyundai Steel Pipe and Seah Steel, pressure vessels by Bumhan Mecatec, and fittings by Taekwang.
Despite uncertainties such as protectionism and high customs duty policies in the global trade environment, POSCO continues to secure a competitive advantage by creating new demand areas with high-value-added products and increasing its market influence. The company also contributes to the growth of South Korea's manufacturing industry and the enhancement of its global competitiveness by establishing close collaborations with its extensive supplier network.
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