[Click eStock] NH Securities "SK Gas, Potential Leader in Hydrogen Economy"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities stated on the 10th that the potential of SK Gas, a natural gas operator, could be highlighted under the Green New Deal policy, maintaining a target stock price of 130,000 won.

Lee Min-jae, an analyst at NH Investment & Securities, said, "The LPG and LNG businesses owned by SK Gas have the potential to be utilized in traditional power generation, renewable energy, fuel cells, hydrogen, and DER (Distributed Energy Resources)," adding, "In the hydrogen economy, companies capable of handling large volumes of natural gas such as LNG and LPG will take the lead in production and distribution by 2030."

SK Gas is expected to diversify its business areas and see profit growth this year with the addition of new projects such as LPG, Goseong Green Power, Ulsan GPS combined heat and power plant, and KET (Korea LNG Terminal). The site behind KET will be used as a liquefied hydrogen production plant, and the produced hydrogen is planned to be used by installing hydrogen charging stations in addition to existing LPG filling stations.

However, consolidated sales in the fourth quarter of last year decreased by 9% to 1.1892 trillion won, with an operating loss of 2.1 billion won. Domestic transportation LPG sales volume declined, and it is analyzed that the rise in international LPG prices was not sufficiently reflected in domestic LPG prices.