Forward Looking StatementScope of Work : EPC Turnkey including Pre-FEED, FEED, & Commissioning Production Capacity : Diesel 420,000 ton/year, DME 100,000 ton/year Coal Gasification

Forward Looking Statement

This presentation contains forward-looking statements concerning the businesses of POSCO

E&C. All statements other than statements of historical fact are, or may be deemed to be,

forward-looking statements. Forward-looking statements are statements of future expectations

that are based on current expectations and assumptions and involve known and unknown risks

and uncertainties that could cause actual results, performance or events to differ materially from

those expressed or implied in these statements. Forward-looking statements include, among

other things, statements concerning the potential exposure of POSCO E&C to market risks and

statements expressing management’s expectations, beliefs, estimates, forecasts, projections

and assumptions. These forward-looking statements are identified by their use of terms and

phrases such as “achieve”, “anticipate”, “forecast”, “envision”, “believe”, “could”, “estimate”,

“schedule”, “expect”, “intend”, “may”, “plan”, “objectives”, “outlook”, “probably”, “project”, “will”,

“seek”, “target”, “risks”, “goals”, “should” and similar terms and phrases. All forward-looking

statements contained in this presentation are expressly qualified in their entirety by the

cautionary statements contained or referred to in this section. Although POSCO E&C believes

that in making such forward-looking statements our expectations are based upon reasonable

assumptions, such statements may be influenced by factors that could cause actual outcomes

and results to be materially different from those projected by us. POSCO E&C cannot assure

you that the assumptions upon which these statements are based will prove to have been

correct.

2014 Gasification Technologies Conference

POSCO E&C – The Optimum Solution Provider


Gwangyang SNG Plant

Coal Gasification Projects in POSCO E&C

Client: POSCO

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

Plant Capacity: SNG 500,000 ton/year (85,000 Nm3/hr)

Coal Consumption: 1.8 Million ton/year (5,350 kcal/kg Coal)

Key Process Licensors: CB&I (Gasification) / Linde (CO Shift & AGR) / Haldor Topsoe (Methanation)


Brazilian SNG Project

General Information

Client : Copelmi Mineraçao LTDA

Location : Eldorado do Sul, RS, Brazil

Production Capacity : SNG 2,000,000 m3/day

Coal Source : Guaiba Mine (200 million tons of coal reserve)

Coal Consumption : 3 Million ton/year (3,600 kcal/kg with 48 wt% ash – dry basis)


Project Schedule 2015.06 2017.01 2020.2Q 2014.08

Mechanical Completion

FEED

(By FEED Company)

Pre-FEED

EPC

PDP (By Licensor)

2 stage (18 months)

• Preparation of PDP(Process Design Package) • Integration of PDPs • Design of utilities and offsite • Estimation of investment cost (±15% accuracy) • EPC Schedule

• Feasibility Study - Market Study - Gasification Study - Conceptual Design - Economic Analysis • Financial Model

Development • Process Licensors

Selection

1 stage (10 months) 3 stage (40 months) 2020.4Q

Commercial Production


Mongolian CTL Plant

General Information

Client : Joint Venture of POSCO & MCS

Location : Baganuur, Mongolia

Scope of Work : EPC Turnkey including Pre-FEED, FEED, & Commissioning

Production Capacity : Diesel 420,000 ton/year, DME 100,000 ton/year


Project Schedule


Samcheok SNG Plant

General Information

Client : Korea Southern Power Company (KOSPO)

Location : Samcheok, Korea

Production Capacity : SNG 500,000 ton/year


Project Schedule

2015.02 2016.06 2019.3Q 2014.03

Mechanical Completion

FEED

(By FEED Company)

Pre-FEED

EPC

PDP (By Licensor)

2 stage (18 months)

• Preparation of PDP(Process Design Package) • Integration of PDPs • Design of utilities and offsite • Estimation of investment cost (±15% accuracy) • EPC Schedule

• Feasibility Study • Financial Model

Development • SPC Establishment • Licensors Selection

1 stage (12 months) 3 stage (40 months) 2019.4Q

Commercial Production



Progress Update on Gwangyang SNG Project

Project Progress (as of August 2014)

Process Design Package (PDP) & FEED : 100% Completed

Detailed Engineering : 99.9%

Procurement : 92.8%

Construction : 88.8%

Main Construction Quantity

Equipment : 470 types, 900 EA

• Stationary Items : 335 types, 600 EA

• Rotating items : 95 types, 250 EA

• Package items : 40 types, 50 EA

Piping : 1,000,000 Dia inch

Man Power Mobilization

Management/Procurement: 900,000 MH

Engineering: 700,000 MH

Construction: 3,400,000 MH

Total: 5,000,000 MH

Number of Workers at the Site : 1,621 persons (as of October 21st, 2014)


SNG Site in Gwangyang, Korea

Satellite Map in 2008



Satellite Map in 2014



July 2009


June 2012


September 2012


September 2013


December 2013


March 2014


May 2014


August 2014


October 2014



Documents

Forward Looking StatementScope of Work : EPC Turnkey including Pre-FEED, FEED, & Commissioning Production Capacity : Diesel 420,000 ton/year, DME 100,000 ton/year Coal Gasification