SK Gas and E1, the two major importers of liquefied petroleum gas (LPG) in Korea, will introduce artificial intelligence (AI) into their overseas LPG trading (intermediary transaction) businesses. Trading is an area where performance can swing widely depending on the split-second judgment of human traders and, at times, luck. The idea is to create a kind of "AI advisor" that learns past transaction patterns and market indicators to help traders arrive at the best outcome.
According to the energy industry on the 22nd, SK Gas is developing an AI program needed for trading operations, centered on its Singapore branch in charge of global trading. The LPG trading business refers to intermediary trade that conducts transactions with multiple countries based on price differences by country, supply-demand control, and time differences.
SK Gas's LPG trading team numbers around five people. They earn annual salaries in the billions of won and drive the company's overall performance. In the first quarter of this year, the LPG division's operating profit was 162.3 billion won, up 164% from the same period a year earlier (61.5 billion won), and it is said to have generated considerable profit through LPG trading.
Because LPG trading has many variables, veteran traders' animal instincts and luck have long swayed results. SK Gas plans to train AI on the patterns by which veteran traders previously generated revenue, as well as global supply-demand data, to build a program that helps traders make the best decisions.
E1 has also begun an AI transformation (AX) to advance LPG trading, logistics, and energy procurement operations. In March, it hired an AI engineer and has focused on improving work systems. The role is to design ways for each department to easily use AI.
It is also considering ways to use AI in the overseas trading sector. E1's trading team numbers around 10 people and has a branch in Singapore. Overseas sales account for 58% of E1's total first-quarter revenue, showing the business's significant contribution.
E1 posted a loss in its overseas LPG trading business in the first quarter of this year. It had built up inventory in the Middle East, but the Strait of Hormuz was blocked, cutting off major transactions. The trader's judgment effectively split the overseas results of SK Gas and E1.
Overseas energy corporations are also said to be actively using AI to reduce variables in the trading process. They use AI weather and energy forecasting platforms to read power demand in importing countries in advance, or identify optimal routes by grasping maritime logistics conditions in real time. It is also said to be useful for proactively adjusting volumes by analyzing economic indicators in importing countries.
The reason the conservative energy industry is moving swiftly appears to be the "AI drive" of each group's leader. Chey Tae-won, chairman of SK Group, made AI a core agenda item at the "2026 New Icheon Forum," held for three days starting on the 11th. Chey said, "It's time to embark on AI transformation at full speed and in all directions, 360 degrees," and called for quick execution by management and employees.
E1 is also attempting to overhaul its structure under the leadership of Koo Ja-eun, chairman of LS Group. Koo is proactive about adopting new technology, having even written and delivered this year's New Year's address with AI. He has repeatedly emphasized companywide AX, saying, "We must make AI the core driver of manufacturing and work innovation."
An industry official said, "By using AI, it is easy to analyze optimal maritime logistics routes, demand changes by temperature, and economic indicators in importing countries," but added, "It is still in the early stages, so we need to watch how effective it will be."