MOSCOW (MRC) -- South Korea’s leading LPG supplier SK Gas Ltd. (part of SK Corporation) will spend KRW 2.02 trillion (~ USD 1.8 billion) to build a combined-cycle power plant and polypropylene (PP) plant in the southeastern industrial city of Ulsan, South Korea, as per GV.
The Korean company said it had signed a deal with the Ulsan city government and Ulsan Port Authority to build the two facilities and invest in new businesses such as renewable energy and energy storage systems.
The project will help provide stable electricity to Ulsan, one of Korea’s largest industrial clusters for automotive, shipbuilding and petrochemical industries. The port city is also home to SK Gas' LPG storage terminals, which are the world’s largest rock cavern storage facilities with a combined capacity of 270,000 tons. The company said it expects the new plants to play a central role in bolstering its gas chemical business.
The gas-fired combined-cycle power plant will be built on a 142,000 square meter site in Bugok-dong and have a capacity of 1,000 megawatts. It will start construction in 2021 and is due for completion in 2024. The PP manufacturing unit, with a projected capacity of 400,000 t/y, is to be set up in the nearby Yongyeon-dong area on a site of 150,000 square meters. The KRW 500 billion project will be jointly invested by SK Advanced Co., a subsidiary of SK Gas, and Polymirae. The new electricity business is expected to be a KRW 320 billion investment in fuel cells, solar power and other renewable energy technologies as well as energy storage systems.
As MRC informed before, in December 2017, SK Global Chemical (part of SK Corporation) completed its acquisition of Dow Chemical’s packaging product business. SK Global Chemical, the chemical unit of SK Innovation, signed a deal with Dow Chemical to acquire the US chemical firm’s polyvinylidene chloride (PVDC) unit in October, 2017. PVDC is used for clear film packaging including plastic food wrap.
SK Global Chemical is a pioneering petrochemical company in Korea, being the first in the country to build a naphtha cracking facility in 1972. Through continuous facility investment, R&D and technological improvement, the company has maintained its position as the leader of the petrochemical industry in Korea.