SK Gas, World's First 1.2GW-Class LNG·LPG Gas Power Plant Commissioning

Ulsan GPS overview. Photo by SK Gas

SK Gas announced on the 4th that Ulsan GPS, in which it has invested, has entered integrated commissioning following the successful initial ignition of the gas turbine.

Ulsan GPS succeeded in the initial ignition of two 400MW-class gas turbines fueled by LNG (liquefied natural gas) on the 1st of last month. This initial ignition is significant as it marks the successful connection of the terminal business and power generation infrastructure, which are core to SK Gas's LNG value chain, with LNG supplied from the 'Korea Energy Terminal (KET)', an LNG terminal first introduced in April.

Subsequently, on the 7th of last month, Ulsan GPS also succeeded in connecting the electricity generated from LNG combustion to the Korea Electric Power Corporation (KEPCO) grid for supply. This indicates that Ulsan GPS is now ready to produce and supply electricity.

Ulsan GPS is the world's first GW-class LNG·LPG (liquefied petroleum gas) dual-fuel combined cycle power plant, constructed by SK Gas with an investment of 1.4 trillion KRW and started in March 2022. The generation capacity is 1.2GW, comparable to a nuclear power plant unit. The annual electricity production is enough to supply 2.8 million households for one year (based on 250 kWh per household per month). It is the largest demand source for SK Gas's LNG business, utilizing 900,000 to 1 million tons of LNG annually supplied from KET.

In particular, it is equipped with the latest and highest-efficiency gas turbines among LNG power plants constructed domestically, resulting in high power generation efficiency and priority in dispatch order. Receiving LNG via pipelines from the nearby KET, located 5 km away, reduces transportation costs, which is expected to maximize power generation profits.

At the commemorative event celebrating the first successful ignition held at Ulsan GPS, key stakeholders and employees are posing for a group photo. From the left in the first row: Kim Yongbeom, Head of Connect Division at SK Gas; Baek Heumjeong, Head of Solution Division at SK Gas; Jung Jincheol, Vice President of KET; Cho Seungho, CEO of Ulsan GPS; Yoon Byungseok, CEO of SK Gas; Hong Seongho, CEO of Korea Siemens Energy; Lee Hyungwon, Head of Technical Infrastructure Division at SK Gas; Moon Sunam, Advisor of Technical Infrastructure Division at SK Gas; Lee Jungmin, Gas & Power Business Manager at SK Eco Engineering. Photo by SK Gas

Additionally, as an LNG·LPG dual-fuel power plant primarily using LNG, it can switch to relatively cheaper LPG when LNG prices are high depending on market conditions, enabling stable power production even during periods of high volatility in international energy prices, and contributing to national energy security.

Moreover, Ulsan GPS contributes to greenhouse gas reduction as an eco-friendly power plant. Recognized for reducing environmental pollutants through the introduction of the latest high-efficiency facilities and plans to adopt carbon-free power sources, Ulsan GPS issued green bonds with the highest 'G1' grade in green finance, the first among domestic combined cycle power plants, in 2022 during ESG certification evaluation.

2024 is a crucial year when SK Gas's new businesses such as power generation and LNG terminals will be fully operational, making the business shift visible. SK Gas plans to successfully achieve commercial operation of the LNG business in the second half of this year after integrated commissioning of gas turbines and steam turbines using LPG fuel at Ulsan GPS and stabilizing operations with KET.

Yoon Byung-seok, President of SK Gas, said, "We are very pleased that the core infrastructures of SK Gas's LNG business have been successfully connected with the smooth progress from the first LNG introduction to the LNG commissioning of Ulsan GPS." He added, "Based on the solid operation of these two infrastructures, we will do our best to successfully expand the business from the existing LPG business to LNG and ultimately leap forward as a Net Zero Solution Provider based on hydrogen and ammonia, contributing to national energy security."

This content was produced with the assistance of AI translation services.