SK Gas CEO Yoon Byung-suk speaks during a teleconference with reporters at Ulsan Gas Power Solution in Ulsan, Tuesday. Korea Times photo by Park Jae-hyuk By Park Jae-hyuk ULSAN — SK Gas has signaled its intent to import liquefied natural gas (LNG) from the United States, describing transactions with the world's largest economy as "inevitable" for both the company and other Korean energy firms. With the expectation of the U.S. surpassing Middle Eastern countries in global LNG exports, as it previously did with liquefied petroleum gas (LPG), SK Gas CEO Yoon Byung-suk warned that avoiding trade with the gas-rich country would be a "risk-taking" move that contradicts market trends. "Contracts for Middle Eastern LNG imports are rigid, often requiring us to accept their terms," Yoon said during a teleconference Tuesday with reporters visiting SK Gas facilities in Ulsan. "In contrast, market-friendly American suppliers offer more flexible terms as latecomers to the market." His remarks coincided with a visit to Seoul by Alaska Gov. Mike Dunleavy, who delivered a request from U.S. President Donald Trump for Korea's participation in a $44 billion project to build a nearly 1,300-kilometer gas pipeline in Alaska to export LNG to Korea and other Asian markets. SK Group was among the companies that met with Dunleavy during his visit. However, Yoon clarified that the Korean government did not pressure SK Gas to join the Alaska LNG project to mitigate U.S. tariff threats. Instead, he emphasized that the company's interest in U.S. LNG imports aligns with its strategy to diversify its business portfolio. An Ulsan Gas Power Solution employee, right, introduces its liquefied petroleum gas/liquefied natural gas-combined cycle power plant in Ulsan, Tuesday. Korea Times photo by Park Jae-hyuk Ahead of Yoon's press conference, SK Gas gave reporters a tour of Ulsan Gas Power Solution (UGPS) and Korea Energy Terminal (KET), highlighting the facilities as examples of the 40-year-old company's successful transition from an LPG supplier to an LNG trader. UGPS, a wholly owned subsidiary of SK Gas, operates the world's first LPG/LNG-combined cycle power plant equipped with two gas turbines and a steam turbine. Since launching commercial operations last December, the facility has supplied electricity to major manufacturing plants in Ulsan. It primarily uses LNG sourced from KET but can switch to LPG when global LNG prices rise, as LPG prices tend to be less volatile. A Korea Energy Terminal employee introduces the company's No. 3 liquefied natural gas storage tank at its construction site in Ulsan, Tuesday. Korea Times photo by Park Jae-hyuk "If U.S. LNG production increases, driving prices down, our company stands to benefit significantly," Yoon said. "Even if LNG prices surge, we have the flexibility to switch to LPG, ensuring stable operations." KET, a joint venture between SK Gas and Korea National Oil Corp., completed the construction of Ulsan's first LNG terminal last November to meet growing demand from energy firms, petrochemical companies and electricity providers in the southeastern port city. During the tour, KET showcased the construction site for its No. 3 LNG storage tank, outlining plans to enter the LNG bunkering business using the terminal's dock. LNG bunkering involves supplying LNG to gas carriers, enabling them to fuel other LNG-powered vessels at sea. Yoon emphasized that both UGPS and KET will leverage their strategic location in Ulsan, home to Korea's largest manufacturing plants operated by major conglomerates.
