Enters market alongside domestic manufacturers, boosting competitiveness across sectors

POSCO is supplying HIC-certified energy steel to Saudi Aramco’s Fadhili Gas Plant Expansion Project.

The Fadhili expansion project is a large-scale energy infrastructure initiative by Aramco, the world’s largest oil company, aimed at increasing the gas processing capacity of the existing plant by approximately 1.6 times.

The HIC-resistant steel provided by POSCO is designed to withstand hydrogen-induced cracking and is used in harsh environments for energy applications such as steel pipes and pressure vessel materials in the oil and gas sector.

Energy steel is typically categorized by application into two segments: plant facilities used for energy extraction and production, and pipelines for transportation. This marks the first time that HIC-resistant steel has been supplied for use in the plant segment.

In particular, the HIC-resistant steel required by Aramco for plant applications must pass HIC testing and quality certification procedures that go beyond international standards (NACE TM0284). Until now, European steelmakers had exclusively supplied this material. Currently, only nine steel manufacturers, including POSCO, have obtained certification from Aramco. With this supply, POSCO is set to expand both its technological presence and market influence in the high-value-added energy steel sector.

In addition, POSCO’s HIC-resistant steel has been processed into finished products by domestic manufacturers of pipes, pressure vessels, and fittings, thereby enhancing the competitiveness of South Korea’s plant industry. Initially, European companies were considered for the pipe and pressure vessel fabrication in the early stages of the Fadhili project. However, with POSCO supplying the steel, the fabrication work was also shifted to domestic firms. This demonstrates how the technological competitiveness of downstream industries has led to new supply opportunities for upstream sectors within Korea. Currently, pipes are being manufactured by Hyundai Steel Pipe and Seah Steel, pressure vessels by Bumhan Mecatec, and fittings by Taekwang.

Amid ongoing uncertainties in the global trade environment, such as protectionism and high tariff policies, POSCO is securing a competitive edge by developing new demand and expanding its market through high-value-added products. Furthermore, by working closely with a wide range of partners, POSCO is actively driving the growth and competitiveness of South Korea’s manufacturing industry.

▲ A view of the ongoing Fadhili Project in Saudi Arabia.