Yoo Jeong-Joon, the CEO and Vice Chairman of SK E&S attended the ‘WGC 2022’ and began working with an energy business representing China’s Huabei area in the LNG (liquefied natural gas) and hydrogen industries.
SK E&S stated that it had inked a Strategic Collaboration Agreement (SCA) in the LNG and hydrogen industry with Beijing Gas Group.
Beijing Gas Group, a Beijing City subsidiary, is China’s largest natural gas operator in the Hebei area.
It runs a 29,900-kilometer natural gas pipeline network in and around Beijing, supplying natural gas to 7.13 million homes.
The two firms decided to build a strategic cooperation connection in the sphere of LNG and the hydrogen industry in China through this SCA agreement.
To begin, we intend to look at joint collaboration prospects to enhance the LNG value chain.
To that aim, the two businesses have agreed to exchange operational expertise for important assets in China, such as LNG (liquefied natural gas) facilities, as well as expand their collaboration on LNG imports and natural gas sales.
It also discusses long-term portfolio ideas for the LNG industry in the future.
They resolved to encourage collaboration along the hydrogen value chain, from production to demand security.
In the sphere of hydrogen production, there is a proposal to create blue hydrogen utilizing CCUS (carbon capture, storage, and utilization) technology at Beijing Gas Group’s Tianjin LNG terminal, as well as green hydrogen in conjunction with a new renewable energy project. This will be looked into.
We’ll also talk about how to incorporate hydrogen into Beijing Gas Group’s natural gas pipelines and develop a hydrogen fuel cell power plant.
It has also been determined to encourage the conversion of Beijing City and Beijing Gas Group cars to hydrogen vehicles, as well as to look for ways to convert Beijing Gas Group’s CNG and LNG refueling facilities to hydrogen refueling stations.
Following the SCA’s signing, the two firms want to create a combined working-level promotion team to look into specific initiatives.
SK E&S noted that by enhancing collaboration with Beijing Gas Group, a key business partner in China, it has built a bridgehead to increase its impact in the Chinese natural gas and hydrogen sector, which is likely to grow explosively in the future.
“‘Net Zero’ is already a worldwide issue that is not restricted to the energy business,” Vice-Chairman Yoo remarked. It needs to grow and change while sustaining this long-term equilibrium.”
In the period of energy transformation, he also projected that natural gas will play a significant role. “Gas will play a key part in the conversion process, as well as a solution to the intermittent problem of renewable energy, which many countries envision as a future energy source,” he said. Even if it aspires to be more than that, it will serve as a ‘gateway’ that must be passed through.
a kind of fossil fuel.” New business prospects, it is said, can only be created when different carbon reduction strategies, such as direct reduction such as CCUS, offset reduction using carbon credits, and so on, are actively exploited.
Vice-Chairman Yoo also discussed the SK Group’s and SK E&S’s carbon reduction efforts. “SK Group will eliminate 200 million tons or 1% of the global carbon reduction target of 21 billion tons by 2030,” added Vice Chairman. “SK E&S is encouraging the construction of a 10 million-ton CCS project in Timor-Leste, and wants to contribute to greenhouse gas reduction by investing in the world’s largest CCS project in North America, with a size of 12 million tons,” says the company.
“As Asia is the market with the largest future potential for energy transition,” he said, “if the counter advances swiftly, ‘carbon-neutral gas’ can serve as a ‘guide star’ rather than a’reef’ in the long trip to the new era of adventure.'”
