POSCO starts work on synthetic natural gas plant

(ATTN: CLARIFIES details in 2nd para; ADDS share price in last para)
SEOUL, June 7 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Tuesday that it began construction of a synthetic natural gas plant in the country that will replace the use of imported natural gas.
The world's third-largest steelmaker said earlier it plans to invest around 1 trillion won (US$926 million) to build the plant that will save around 150 billion won annually by using synthetic natural gas instead of imported liquefied natural gas in making steel.
The plant in the southern port city of Gwangyang is expected to start operations in 2014, and the coal gasification plant will produce 500,000 metric tons of synthetic natural gas a year by processing coal, it said.
The project is part of POSCO's efforts to reduce greenhouse emissions and use clean energy sources.
Earlier, the steelmaker said it will invest 7 trillion won in environmental businesses by 2018 and aim to reach 10 trillion won in annual sales.
The sectors for investment include synthetic natural gas, wind power generation, fuel cells and smart grid technology, the company said.
POSCO, which produces about 10 percent of South Korea's gross carbon dioxide, aims to cut 14 million tons in greenhouse gas emissions by 2020.
Shares of POSCO closed at 432,500 won on the Seoul bourse, up 0.12 percent.
sam@yna.co.kr