As the world grapples with the challenge of achieving carbon neutrality, one company stands at the forefront of innovation in energy production SK Gas. From advancing its foothold in the LNG import terminal business to creating groundbreaking infrastructure like Ulsan GPS (Gas Power Solution), SK Gas is revolutionizing energy solutions with a focus on sustainability, efficiency, and innovation. This is the story of how SK Gas is building the future of energy while addressing global challenges.
The Midstream Marvel: Expanding the LNG Value Chain
SK Gas’ entry into the LNG import terminal business represents a critical leap in the midstream segment of the LNG value chain. This strategic move not only strengthens SK Gas’ ability to influence the production and consumption areas of LNG but also opens doors for collaborative ventures with domestic LNG operators, global LNG upstream players, and UGPS.
The company has also unlocked a steady revenue stream by leasing storage space at its terminals to LNG importers for long-term agreements. But SK Gas isn’t stopping there. It has set its sights on establishing a state-of-the-art LNG and oil terminal through a joint venture, Korea Energy Terminal (KET) with the Korea National Oil Corporation (KNOC) at Ulsan Port.
While KNOC will manage oil storage and import facilities to ensure national energy stability, SK Gas will take charge of LNG unloading facilities and storage tanks. This terminal is projected to commence commercial operations by 2024, marking yet another milestone in SK Gas’ journey of expansion and innovation.
Ulsan GPS: The World’s First LNG-LPG Dual-Purpose Power Plant
At the heart of SK Gas’ transformative vision lies Ulsan Gas Power Solution (Ulsan GPS) the world’s first LNG (liquefied natural gas) – LPG (liquefied petroleum gas) dual-purpose gas combined cycle power plant. Officially commenced commercial operations reported Business Korea. This project is a testament to SK Gas’ commitment to cutting-edge solutions and energy efficiency.
Launched in 2019, the Ulsan GPS project represents a massive investment of 1.4 trillion won, with SK Gas holding 99.5% equity and the Korea Development Bank owning 0.5%. With an impressive 1.2-gigawatt (GW) power generation capacity, Ulsan GPS can supply electricity to 2.8 million households, assuming an average monthly usage of 250 kWh per household, a capacity comparable to that of a nuclear power plant.
What sets Ulsan GPS apart is its high efficiency and flexibility. By using the latest and most efficient gas turbines, it outperforms other domestic LNG power plants. Additionally, its proximity to the Korea Energy Terminal (KET) is just 5 kilometers away and reduces transportation costs significantly, making it an economical choice.
Ulsan GPS: Flexibility Amid Price Volatility
One of the most innovative features of Ulsan GPS is its ability to switch between LNG and LPG as fuel sources. While LNG is its primary fuel, the plant can seamlessly transition to LPG when LNG prices surge. This flexibility ensures stable power production even during times of global energy price volatility, offering a crucial advantage in an unpredictable energy market.
As the world moves toward cleaner energy solutions, Ulsan GPS is poised to play a pivotal role in achieving carbon neutrality. Recognized for its contributions to greenhouse gas reduction, the plant has implemented strategies to minimize environmental pollutants and has introduced carbon-free power sources.
In 2022, Ulsan GPS made history by becoming the world’s first domestic gas combined power plant to issue green bonds rated ‘G1’, the highest grade in ESG certification evaluations. The company’s commitment to sustainability doesn’t end there. Ulsan GPS has ambitious plans to transition from LNG-LPG power generation to hydrogen co-firing, aiming to achieve net zero by 2050.
Building an Eco-Friendly Energy Ecosystem in Ulsan
Yoon Byung-seok, the CEO of SK Gas, envisions a future where Ulsan the largest industrial city in South Korea, becomes a hub for eco-friendly energy innovation. Speaking about the company’s mission, Yoon said, “In the future, SK Gas will strengthen Ulsan’s competitiveness by establishing an eco-friendly energy ecosystem and will become a partner in creating a sustainable future for our customers.”
SK Gas’s efforts extend beyond infrastructure to build meaningful partnerships and explore green technology innovations. Through projects like Ulsan GPS and KET, the company is not only addressing the current energy needs but also laying the groundwork for a sustainable, carbon-neutral future.
Key Highlights of Ulsan GPS
- World’s First Dual-Purpose Plant: Combines LNG and LPG power generation.
- Massive Investment: Funded with 1.4 trillion won by SK Gas and partners.
- Gigawatt-Scale Capacity: Generates 1.2 GW of power, enough for 2.8 million households.
- Energy Flexibility: Switches between LNG and LPG based on price trends.
- Proximity Advantage: Located just 5 km from KET, reducing transportation costs.
- Carbon Neutral Ambitions: Plans for hydrogen co-firing to achieve net zero by 2050.
A Call to Action for a Sustainable Future
The story of SK Gas is one of innovation, resilience, and a relentless pursuit of sustainability. With projects like Ulsan GPS and KET, the company is redefining energy production and leading the charge toward a greener tomorrow.
For industries, governments, and individuals, SK Gas’ initiatives serve as a powerful reminder that achieving energy efficiency and environmental sustainability is not just a possibility but it’s a responsibility.
