SK Gas Ltd, one of South Korea’s liquefied petroleum gas supplier, which has been transforming into a clean energy company, has moved a step closer to commercial operations of the world’s first LNG/LPG combined cycle power plant, slated for later in 2024.
SK Gas has announced that Ulsan GPS, its subsidiary operating the world’s first LNG/LPG combined cycle power plant in Ulsan, has initiated the first firing of two gas turbines in early May 2024. Each turbine has a capacity of 400 MW and has been distributing LNG-fired electricity to power grids operated by Korea Electric Power Corp., the state-owned utility company.
Since then, UGPS has been test-operating its facilities with LNG supplied from the Korea Energy Terminal, SK Gas’ first LNG terminal, without any issues. This progress has brought the company closer to completing its LNG value chain, a crucial step in its transition to an eco-friendly energy provider.
UGPS, located in the coastal city of Ulsan, about 310 km southeast of Seoul, is the world’s first combined cycle power plant to use both LNG and LPG as clean fuels.
SK Gas invested 1.4 trillion won (US$1 billion) in UGPS, which is expected to generate 1.2 GW, equivalent to one nuclear power plant, and power approximately 2.8 million households annually.
Each year, UGPS is projected to use 900 000 to 1 000 000 t of LNG, transported through pipes directly connected between the power plant and KET, which completed its test operations in April. Given that the LNG terminal is located about 5 km from the power plant, SK Gas will be able to maximise its power generation profits with low LNG delivery costs.
UGPS is designed to utilise the less-expensive LPG to fire the power plant when global LNG prices rise.
SK Gas announced plans to test-fire gas and steam turbines at UGPS with LPG, aiming to commence commercial operations of the dual-fuel power plant in the second half of this year.