South Korean steelmaker POSCO Holdings has announced that it will supply hydrogen-induced cracking (HIC) certified steel for Saudi Aramco’s Fadhili gas plant expansion project. The supply marks a major step forward in POSCO’s strategy to strengthen its position in the high-value-added energy steel market.
HIC steel is designed to prevent cracks caused by hydrogen exposure in high-pressure environments, especially in oil & gas pipelines and pressure vessels. It is critical for safe operations in harsh environments.
Aramco will use POSCO’s HIC-certified steel in the expansion of the Fadhili gas plant, aiming to increase its gas processing capacity by 1.6 times.
Collaboration boosts South Korean industrial ecosystem
In addition to POSCO’s supply, several South Korean companies will participate in processing the HIC steel into final products, including Hyundai Steel Pipe, SeAH Steel, Bumhan Mecatec and Taekwang.
These companies will manufacture pipes, pressure vessels, and fittings for the project, thereby generating new export opportunities and reinforcing domestic value chains.
Strategic importance amid global trade uncertainty
POSCO emphasized that the deal aligns with its strategy of targeting high-value-added steel segments, expanding overseas sales channels, and developing new demand amid protectionism and high tariffs. This partnership with Aramco not only enhances POSCO’s technological prowess, thanks to its Aramco certification, but also positions the company as a leading global supplier in energy-grade steels.