Korea Energy Terminal Co – a joint venture between Korea National Oil Corporation and SK Gas Co – has opened for business, according to Korea media.
The $855m project, which has been 16 years in the making, has capacity for 4 million barrels of LNG.
For SK Gas, the terminal marks “a significant shift” from its LPG model into LNG. The site features three LNG tanks (645,000cbm) and in future, a total of six LNG tanks, and ammonia storage facilities, are earmarked within the Clean Energy Complex behind the terminal.
Amid challenging conditions in the refining and petrochemical sectors, SK Gas will strive to foster “mutual growth and enhance industrial competitiveness by providing optimal energy supplies,” according to CEO Yoon Byung-seok.
Since early 2024, at least four LNG terminal projects with a combined regasification capacity of 11 million tonnes per annum (MTPA) have been delayed or cancelled due to a lack of economic benefits and rising construction costs, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
South Korea still relies heavily on imported fossil fuels and lags at least 15 years behind other countries’ target of meeting the 30% renewable power threshold, according to IEEFA.
There is a ‘widening gap’ between LNG import infrastructure and demand, given the South Korean government’s climate targets projected that LNG-fired power generation would fall from 26.8% in 2023 to 11.1% by 2038.
The Asian powerhouse is targeting a 40% cut in industrial emissions by 2030, COP29 delegates heard this week. At COP28, South Korea backed pledges to triple global renewable energy capacity by 2030.
