Updates on

POSCO SNG Project

A World of Solutions

1

POSCO Gwangyang SNG Project

• 0.7 B NM3/yr SNG production

(500,000 mtpy)

• 5500 mtpd sub-bituminous coal

processed into syngas and

catalytically converted to methane

• 2 + 1 Gasification Trains

• Located adjacent to the POSCO

Gwangyang Steel Mill on reclaimed

land

• Groundbreaking 2Q2011,

Start-Up in 4Q2014

• First Gasifier set April 2013

SNG Process Overview

7 Courtesy of POSCO

• Feedstock Capacity & Specification : 5,500 mtpd (1.8 MM mTPY) Sub-Bituminous Coal

Selected Coals Feedstock

Range

Gross As Received (GAR) Total Moisture (as received) % 20-30

Air Dried Basis (ADB)

Intrinsic Moisture % 18.0

Volatile Matter % 32.0-38.0

Ash % 3-6

Fixed Carbon % 39.0-41.0

S % 0.2-1.0

Cl % 0.01-0.03

Ultimate Analysis Dried

Ash Free (daf)

HGI 40-42

S.E. gar (HHV) kcal/kg 5,150-5,350

S.E. gad (HHV) kcal/kg 5,500-5,735

POSCO SNG Project Feedstock

Client : POSCO

Contractor : POSCO E&C (EPC Turnkey including PDP, FEED, & Commissioning)

Plant Capacity : SNG 500,000 ton/year

Coal Consumption : 2 Million ton/year

Construction Area : 400,000 m2

Project Period : 2009.11 ~ 2014.8 ( 58 months)

Project Cost : 1 Billion USD

Licensor : CB&I (Gasification) / Linde (AGR) / Haldor Topsoe (Methanation)

POSCO SNG Project

2009 2010 2011 2012

EPC

Contracts

(October)

Gasification

PDP Completion

(October)

Detailed Design

Completion

(March)

2013

Ground

Breaking

(June)

FEED

Completion

(July)

Commissioning

(January)

Commercial

Production

(December)

General Information

Project Schedule

-4-

Groundbreaking in June 2011

June 2011

Piling Start in Feb 2012

February 2012

June 11, 2013

Syngas Cooler

April 2, 2013

Coal Storage Silos

April 8, 2013

-10-

500,000 mtpy SNG 2+1 trains sub-bituminous coal

Site Photo

Sept. 30, 2013

POSCO SNG Project

-11-

POSCO SNG Project

-12-