- SK E&S signed LOI with the Philippines in response to the rapid rise in LNG demand in the country
- Measures to strengthen economic cooperation were discussed at the Korea and Philippines bilateral summit …. Two countries signed MOU for mutual energy cooperation paving way for LNG infrastructure development
- SK E&S opened a local office last year to explore business opportunities
SEOUL, South Korea, June 7, 2018 /PRNewswire/ -- SK E&S (CEO Yu Jeong-Joon, www.skens.com) announced on June 7th that it signed a Letter of Intent (LOI) with the Department of Energy of the Philippines on the 5th to propose the construction of LNG infrastructure worth 1.7 billion USD in the Philippines.
Yu Jeong-Joon, SK E&S President and Chief Executive Officer (left), Alfonso Cusi, Department of Energy Secretary (middle), Ramon Lopez, Department of Trade and Industry Secretary (right) signing the LOI.
In the presence of Philippine President Rodrigo Duterte (middle), Yu Jeong-Joon, SK E&S President and Chief Executive Officer (left) and Alfonso Cusi, Department of Energy Secretary (right) exchanging the LOI.
Yu Jeong-Joon, SK E&S President and Chief Executive Officer (left), Alfonso Cusi, Department of Energy Secretary (middle) and Ramon Lopez, Department of Trade and Industry Secretary (right) participating in a photo opportunity after signing the LOI.
SK E&S presented a blueprint to the Philippines government for the construction of a LNG terminal with the capacity of up to five million tonnes per year, several LNG power plants of more than 600 MW, and an up to 150 km long pipeline connecting the terminal and power plants in Luzon Island, north of the Philippines.
SK E&S said that it suggested the development of a large scale LNG infrastructure based on its expectation that the Philippines government will need to build the infrastructure in response to a growing demand for LNG.
The Philippines has entirely relied on the Malampaya offshore gas field as its only supply source for natural gas. However, the Malampaya gas reserves are expected to be depleted by 2024 and the growing demand for electricity to fuel economic growth underscores the strong needs for LNG imports.
Indeed, the Department of Energy of the Philippines forecasts that the country's power demand will grow by an annual rate of 5.6% by 2040, while the demand for LNG will experience an annual growth rate of 1.7%, mainly from gas power plants along with its economic growth. Thus, the Philippines government has been reviewing measures to complete LNG infrastructure by the end of 2023 to import LNG in earnest.
In the meantime, SK E&S opened a local office in Manila, Philippines in September last year and has sought ways to contribute to the LNG infrastructure development in the country.
A spokesperson for SK E&S said, "If the LNG infrastructure development project SK E&S proposed is realized, the project is expected to create 800,000 jobs per year, or 2,200 jobs per day during the construction."
Previously on June 4th, South Korean President Moon Jae-in met up with Philippines President Rodrigo Duterte to discuss joining hands for mutual cooperation in several areas including trade & investment, infrastructure, national defense & defense industry, agriculture, development cooperation, and culture & human resources exchange. With both presidents in attendance, the Korean Ministry of Trade, Industry and Energy and the Philippines Department of Energy signed a Memorandum of Understanding (MOU) for the cooperation in the energy sector.
The construction of the LNG infrastructure in the Philippines under the LOI signed between SK E&S and the Philippines' Department of Energy is one of three major projects included in the MOU for mutual energy cooperation.
The SK E&S spokesperson added, "SK E&S is a global energy company running a business across LNG value chain from upstream to downstream sectors. We hope to have an opportunity to contribute to the development of the Philippine's energy industry based on our vast experiences and technological prowess in the LNG business."
SK E&S, based in Seoul, South Korea, is an affiliate of SK Group, one of the country's top three industrial conglomerates, with more than 75,000 employees through a network of 96 affiliates and 265 global corporations in over 40 countries. SK Group has grown into a leading national and globally renowned company. SK Group leads a global growth in the field of energy and chemicals, drives technological innovations in information and telecommunication, and semiconductor, and enriches lives in the marketing and service sector.
Since its start as a city gas company in 1999, SK E&S has secured largest city gas market share in the nation. It has completed LNG Value Chain from upstream to downstream and has evolved 'Global Clean Energy and Solution Provider'. The company is engaging in city gas, district heating and cooling, gas-fueled electricity generation, LNG import, and renewable energy. The company's LNG strategy pursues presence and integration along the entire LNG value chain, ranging from gas field development to LNG production, LNG terminal operation and LNG and gas trading at home and abroad.
The company is focusing on the development of overseas businesses, laying the foundation for its emergence as a comprehensive energy service provider in the global market. The entrance into the Chinese city gas market in 2007 was the first step to realize this business goal, and it has been followed by the expansion of the company's reach to other global energy markets such as the U.S.
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