Saudi Aramco will for the first time use hydrogen-induced cracking (HIC)-resistant steel from South Korea’s Posco at its Fadhili gas plant, as part of efforts to support the facility’s major expansion.
Posco announced it will supply the specialty steel to Aramco for use in the Fadhili Gas Increment Program, which aims to boost the plant’s capacity by 60pct. Located about 350 kilometers northeast of Riyadh, the Fadhili facility plays a key role in Saudi Arabia’s gas production strategy.
While the supply volume and contract value were not disclosed, the agreement marks a significant step for Posco as it seeks to expand its presence in the energy steel market, traditionally dominated by European producers.
HIC-resistant steel is critical for gas processing infrastructure, as it prevents hydrogen-induced cracking, a common challenge in gas production and distribution systems.