SK Gas Ltd., South Korea’s leading liquefied petroleum gas (LPG) distributor, has postponed the commercial operation of its innovative combined cycle power plant in Ulsan, South Gyeongsang Province. The plant, capable of using both LPG and liquefied natural gas (LNG), was set to become the first of its kind globally with a gigawatt capacity.
The decision to extend the test operation period comes as SK Gas aims to ensure the safety and reliability of the Ulsan GPS facility. Since March 2022, SK Gas has invested 1.4 trillion won (approximately $1.02 billion) in constructing the plant, which boasts a capacity of 1.2 gigawatts. Test operations commenced in May, with plans to supply electricity to 2.8 million households annually once commercial operations begin.
An SK Gas official stated, “Since we are operating the world’s first dual-fuel LNG and LPG power plant, we have pushed back the date [of commercial operation] to ensure its safety through additional operational checks and preparations.” The official noted that more extensive testing and assessments are needed than for their previous power plants.
Despite the delay, industry analysts, including Yoo Jae-sun from Hana Financial Investment, anticipate that revenue from the Ulsan GPS will be reflected in SK Gas’s financials starting in the fourth quarter. This strategic move underscores SK Gas’s commitment to safety and innovation as it prepares to lead in the energy sector with its cutting-edge dual-fuel technology.
