SK Gas announced on the 26th that Ulsan Gas Power Solution (Ulsan GPS) has completed the initial commercial operation reporting and has begun commercial operation. It successfully expanded its new business from a liquefied petroleum gas (LPG) focused business structure to a liquefied natural gas (LNG) power generation business.
SK Gas has been promoting the Ulsan GPS project since 2019 and began construction in March 2022. After LNG was first introduced to the Korea Energy Terminal (KET) in April, it started a trial operation with the initial ignition in May and began full-scale commercial operation this month after securing operational stability.
Ulsan GPS is the world's first LNG-LPG combined gas complex power plant, constructed with an investment of 1.4 trillion won by SK Gas in March 2022. The equity structure consists of 99.5% SK Gas and 0.5% Korea Development Bank. The power generation capacity is 1.2 gigawatts (GW), similar to one nuclear power plant, which provides enough electricity for 2.8 million households (based on 250 kWh monthly usage per household) annually.
By installing the latest and most efficient gas turbines among domestic LNG power plants, the plant has high generation efficiency. It can directly receive LNG through pipelines from KET, located 5 km away, thus reducing transportation costs and enhancing economic efficiency. While LNG is used as the main fuel, LPG can serve as an alternative fuel when LNG prices exceed LPG prices, ensuring stable power generation even amid significant fluctuations in international energy prices.
Ulsan GPS is expected to play a key infrastructure role in promoting carbon neutrality in the future. It has already been recognized for its contribution to greenhouse gas reduction through plans to reduce pollutants and introduce non-carbon energy sources, becoming the first domestic gas combined power plant to issue green bonds rated 'G1', the highest rating in ESG certification evaluation, in 2022. Ulsan GPS plans to start with LNG-LPG combined power generation and gradually expand hydrogen co-firing in the medium to long term to achieve net zero by 2050.
Yoon Byeong-seok, CEO of SK Gas, noted, "In the future, SK Gas will become a partner that strengthens the competitiveness of Ulsan, the largest industrial city in the country, through the establishment of an eco-friendly energy ecosystem and works together with customers to create a sustainable future."