On the 25th, inside the SK Gas Ulsan Gas Power Solution (GPS) located in the Mi-po national industrial complex in Nam-gu, Ulsan, I donned a hard hat and safety shoes and stepped inside. Before me stretched a maze of pipes, intricately connected, resembling blood vessels. Structures painted in vibrant colors such as yellow, light green, and silver sparkled in the sunlight.
This facility, which began commercial operations in December last year, is a combined gas power plant that can use both liquefied petroleum gas (LPG) and liquefied natural gas (LNG) as fuel. The annual power generation capacity is 1.2 gigawatts (GW), equivalent to that of one nuclear power plant, enough to supply electricity for 2.8 million households (based on 250 kWh per household per month). Jo Seung-ho, CEO of Ulsan GPS, noted, "The biggest advantage is being able to run generators with cheaper fuel by comparing the prices of LNG and LPG. Ulsan GPS is the world's first large-scale power plant of this capacity with such structure."
Ulsan GPS broke ground in March 2022 and was completed in April last year. The area is 150,245 square meters (about 45,000 pyeong), with a total investment amounting to 1.4 trillion won. The equity structure is 99.48% SK Gas and 0.52% Korea Development Bank. Since its founding in 1985, SK Gas has focused on the import, storage, and trading of LPG but has expanded into the LNG sector for business diversification.
Ulsan GPS is equipped with two gas turbines and one steam turbine. The introduced LNG or LPG is mixed with compressed air, then burned to convert into high-temperature and high-pressure exhaust gas, which spins the gas turbine to generate electricity. The exhaust gas that passes through the gas turbine is then used to boil water via a heat recovery boiler, and the steam generated passes through the steam turbine to generate electricity once more.
CEO Jo stated, "The turbines here are the latest equipment, specially designed in collaboration with Siemens, and increase power generation efficiency by 2-3% compared to other gas power plants in the country while also reducing greenhouse gas emissions."
SK Gas's LNG business also extends to the terminal sector. In collaboration with the Korea National Oil Corporation (KNOC), SK Gas established the Korea Energy Terminal (KET) about 5 kilometers away at the Ulsan North Port. KET is the first LNG terminal in the Ulsan region and is designed to simultaneously store LNG and crude oil.
At KET, located about a 15-minute drive from Ulsan GPS, the construction of the third LNG tank was underway. The massive tank, with a diameter of 90.6 meters and a height of 54.7 meters, resembled a giant dome stadium. Lee Hyun-gwan, the head of the KET construction management team, noted, "The dome is about 10 meters wider and approximately 30 meters taller than the Jangchung Gymnasium. Its volume will be about three times larger," adding, "Once the third tank is completed in April next year, KET's LNG storage capacity will increase from the current 430 million liters (L) to 645 million L." KET plans to expand its LNG tanks to six by 2034 to supply 13.7% of domestic demand.
At KET, LNG is offloaded from LNG carriers moored at the dock, in a liquid state at -162℃, and transferred to storage tanks. When needed, it is vaporized using seawater and supplied through pipes to nearby consumers, including Ulsan GPS. The Mi-po national industrial complex, where Ulsan GPS is located, is Korea's first national industrial complex and is considered a symbol of the country's modernization.
Various corporations from diverse industries, including SK Energy, SK Geo Centric, SK Enmove, Hyosung, Hyundai Motor, HD Hyundai Heavy Industries, LOTTE Chemical, Korea Zinc, and S-Oil, are located here. KET is also pushing for the expansion of new businesses such as LNG bunkering (ship fuel supply) and LNG cold energy supply.
Recently inaugurated U.S. President Donald Trump is promoting the expansion of LNG production within the country, leading to expectations of a long-term decline in LNG prices. Yoon Byeong-seok, president of SK Gas, stated, "In the past, the LPG market was 90% dominated by the Middle East, but now U.S. production has surpassed that of the Middle East. LNG will follow a similar trend," adding, "Dealing with the U.S. is an unavoidable market change. Ultimately, we will have no choice but to increase imports of American LNG."
President Yoon noted, "This year marks the first year the company will fully launch its LNG and power generation businesses, and we aim to make stable operations our top priority based on the know-how gained from successfully operating the LPG business for the past 40 years," adding, "In the future, we intend to become a "Net Zero solution provider" by integrating LNG bunkering, hydrogen, ammonia, and overseas energy storage system (ESS) businesses."