The construction project of the ‘Yeosu Myodo LNG Terminal’ in Jeollanam-do will gain momentum. The Yeosu Myodo LNG Hub Terminal project, which Jeollanam-do is promoting as a key project of the 8th local government, has been selected for the government’s regional revitalization investment fund, and the construction project of the Yeosu Myodo LNG Hub Terminal, worth 1.4 trillion won, is expected to gain speed.
South Jeolla Province announced on the 12th that the Yeosu Myodo LNG Hub Terminal Project was selected as a ‘regional revitalization investment fund project’, a key government policy, at a meeting of economic ministers chaired by the Deputy Prime Minister for Economic Affairs, and successfully attracted 287.2 billion won in government funds.
The local revitalization investment fund project is a system in which the government and policy finance institutions create a fund and provide support to provide a ‘welcome gift’ for investment when the private sector discovers local investment projects with large ripple effects in the local community. The government plan was announced in July of last year.
The ‘Yeosu Myodo LNG Hub Terminal’ project in South Jeolla Province, which has been preparing to apply for the regional revitalization investment fund since 2023, has undergone thorough business feasibility verification by the government and private financial markets, and has received high scores in terms of private investment activation and regional economic ripple effects.
In particular, it is evaluated as having great symbolic significance at the national level as it is the largest ‘regional revitalization investment fund project’ in the country and the first investment case in the ‘opportunity development special zone’ ambitiously designated and announced by the government last June.
The ‘Yeosu Myodo LNG Hub Terminal’ is a project that will invest a total of KRW 1.4362 trillion in reclaimed land in Yeosu to build LNG storage tanks, a dedicated port, and transport pipelines. Starting full-scale operation in 2028, it will supply 3 million tons of LNG per year for industrial and power generation purposes at low prices to the Yeosu-Gwangyang Bay area for 20 years until 2047.
This project was initially a purely private-sector project and was launched in earnest with the establishment of SPC in 2020. However, due to the recent global high interest rate environment, it has been difficult to attract private investment, which has led to delays in the project. However, the selection of this regional revitalization investment fund has given impetus to the project.
When the business gets on track, it is expected to have a production inducement effect of 2.8 trillion won and an employment inducement effect of 13,000 people. In addition, Jeollanam-do will secure 31.2 billion won in acquisition tax, and Yeosu City will be able to secure stable tax revenue of 2.7 billion won per year for 20 years, including income tax and property tax.
The LNG supply price of Myodo Terminal is more than 10% cheaper than existing LNG, which is expected to greatly contribute to reducing energy costs for companies in the Yeosu-Gwangyang Bay area and revitalizing the industrial complex.
South Jeolla Province plans to hold a groundbreaking ceremony on October 4 with approximately 500 people in attendance, including government officials, members of the National Assembly, and local residents. In November, Hanyang Corporation, GS Energy, South Jeolla Province, Yeosu City, and the Regional Activation Investment Fund will sign a shareholder agreement, and the fund will begin full-scale operation in January 2025 after receiving local government investment.
Former South Jeolla Province Governor Kim Young-rok said, “The selection of this regional revitalization investment fund is a great success for all 2 million residents of the province, as it marks the first step toward a large-scale investment of 1.4 trillion won to revitalize the energy industry cluster in the eastern region,” adding, “We will actively support the Yeosu Myodo LNG Terminal to enhance the competitiveness of the Yeosu-Gwangyang Industrial Complex and help it grow into a global energy hub.”
Queen Choi Ha Na reporter photo Jeonnam Province
.
2024-09-13 05:11:37