"We will create additional profits by connecting LPG and LNG"
"We will expand our geopolitical portfolio to include the United States"
Plans for LNG bunkering and LNG cold energy supply business
Yoon Byung-seok, CEO of SK Gas, announced that this year will be the inaugural year for expanding the liquefied natural gas (LNG) business. SK Gas has steadfastly maintained its liquefied petroleum gas (LPG) business model for 40 years since 1985. In line with the eco-friendly trend, the company completed LNG-related facilities one after another last year and will fully launch its LNG business this year.
On the 25th, CEO Yoon met with reporters via video call at 'Ulsan Gas Power Solution (Ulsan GPS)' located in Nam-gu, Ulsan, to announce the company's operational policy for this year. He said, "There was a limit to growth when only doing LPG, so it was necessary to enter LNG to prepare for future electrification, and we achieved that," adding, "We accomplished the 'connection' between LPG and LNG, which no one had attempted before." He also explained, "LPG has a substitute nature for LNG, so it cannot be completely abandoned," and "LNG, which has high price volatility, can be exported as needed without supply to create additional profits."
Ulsan GPS, in which SK Gas holds a 99.5% stake, is the world's first LPG and LNG dual-use gas combined power plant. It began commercial operation in December last year. CEO Yoon described Ulsan GPS as "physically complete for now," and said, "Since this is the first attempt, there may be various difficulties, but we are committed to stabilizing the structure by operating it at the highest level." He predicted, "After 2 to 3 years, Ulsan GPS will be well operated and positively impact SK Gas's mid-term revenue."
CEO Yoon explained that through Ulsan GPS, it is possible to optimize power generation costs by selectively utilizing LPG and LNG depending on price fluctuations. He also mentioned that due to the geographical advantage of the Ulsan industrial complex, many customers requiring large-scale power can be attracted. SK Gas, in joint venture with Korea National Oil Corporation, established an LNG terminal at Korea Energy Terminal, located close to Ulsan GPS (4 km straight-line distance). He said, "We can supply LNG directly to customers in Ulsan via pipeline," and "Ulsan GPS can also produce electricity in response to price volatility."
SK Gas also plans to continue LNG cooperation with the United States. CEO Yoon said, "SK Gas is already one of the companies importing the most LPG from the U.S.," and added, "In the future, we can increase transactions with the U.S. in the LNG market, following the Middle East and Australia." He continued, "Transactions with the U.S. are unavoidable," and "We will continue to diversify our geopolitical portfolio."
LNG bunkering equipment installed at 'Korea Energy Terminal,' a joint venture between SK Gas and Korea National Oil Corporation. 2025.03.25. Photo by Oh Ji-eun
SK Gas announced plans to further expand into LNG bunkering and LNG cold energy (冷熱) supply businesses. SK Gas has established a bunkering facility at Korea Energy Terminal to inject LNG fuel from the pier to ships at sea. LNG is stored in a liquefied state below minus 162 degrees Celsius, and the cold energy generated when it vaporizes back into gas form is planned to be utilized for cooling data centers and other uses. CEO Yoon mentioned, "We are currently reviewing technologies related to cold energy ideas."
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