POSCO Strikes $550 Million Deal for Chord’s Marcellus Gas Assets

South Korea based POSCO International Corp. has agreed to pay $550 million for the Marcellus position held by a Chord Energy Corp. subsidiary. The purchase gives POSCO a producing US shale gas asset that the company plans to use for immediate cash flow while broadening its LNG value chain.

The transaction covers about 32,000 net acres in the core of the Marcellus play in Pennsylvania. POSCO is acquiring an interest where it will not operate the field, leaving field activities with an established local operator while concentrating its own efforts on gas marketing and downstream integration.

POSCO said in a Sept. 16 briefing that the assets recorded trailing 12 month production of about 121 MMcfd. The position also holds 1.3 tcf of reserves, a total that includes 220 bcf of discovered potential, according to the company.

Production averaged about 124 MMscfd during the first half of 2026, POSCO said. The output consists entirely of residue gas, with no NGLs, giving the acquired position a production profile focused solely on gas.

The asset includes 2,006 wells in total. POSCO said that count consists of 1,305 producing wells and 701 development wells, combining existing production with additional wells designated for development.

Production, drilling and permitting will continue to be handled by the established local operator, POSCO said. The arrangement allows POSCO to focus on marketing the produced gas and integrating that supply with downstream portions of its business.

Dong-il Kim, head of POSCO International's E&P Business Division, said, "This investment goes beyond the simple acquisition of a producing gas field." He added, "It is an investment to expand the value chain by securing immediate returns through proven US upstream assets and connecting gas sales, liquefaction, LNG trading, and group demand."

Under POSCO's current sales portfolio, about half of the production is sold near the production sites. Roughly 30% is marketed into the northeastern US and Ohio, while another 20% is supplied to markets along the Gulf Coast.

That portfolio gives POSCO existing sales outlets across areas near the field and in more distant markets. The company now plans to extend that commercial approach into LNG as part of its wider integration strategy.

Beginning in 2029, POSCO plans to direct a portion of production from the acquired Marcellus position to LNG liquefaction plants. The resulting LNG would then be marketed through the company's trading subsidiary.

The plan links upstream shale gas production with liquefaction and LNG trading. POSCO also described group demand as part of the expanded value chain it intends to support through the acquisition.

For Chord Energy, the transaction advances a portfolio simplification strategy outlined in the company's release. Chord is selling an asset that it no longer considers central to the portfolio it plans to retain.

Chief executive officer Danny Brown said Chord identified the position as noncore following its 2024 acquisition of Enerplus. That assessment placed the Marcellus interest outside the portfolio Chord intends to carry forward after completing the divestment.

Closing is expected during the fourth quarter of this year and remains subject to customary closing conditions. Until that process is completed, the transaction represents an agreement by POSCO to acquire the position from Chord's subsidiary for the stated $550 million consideration.

After the sale closes, Chord's portfolio will be focused exclusively on its position in the Williston Basin. That position covers 1.3 million net acres, according to the company's description of its remaining asset base.

Chord is working to increase production from that portfolio while using fewer rigs and crews. The sale therefore moves the company toward a concentrated Williston Basin position as POSCO takes on the producing Marcellus gas interest and its planned LNG connections.