Korea's SK E&S, Beijing Gas sign LNG, hydrogen pact
South Korea’s SK E&S and China’s Beijing Gas Group have agreed to work in the LNG and hydrogen space, the Korean firm said on May 26. The two companies signed a joint cooperation agreement on May 25 at World Gas Conference.
SK E&S and Beijing Gas, a unit of Beijing City, plan to explore opportunities for joint cooperation to expand the LNG value chain. The two companies agreed to share operational know-how for major assets such as LNG terminals in China and to further cooperate in terms of LNG imports and natural gas sales. The Korean company has decided to share its long-term portfolio strategy for future LNG businesses.
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In the hydrogen space, the companies plan to develop the complete value chain, from production to creating demand, SK E&S said. They plan to produce blue hydrogen by applying carbon capture, storage and utilisation technology using Beijing Gas' under construction Tianjin LNG terminal.
In addition, a plan to mix hydrogen into natural gas pipelines owned by Beijing Gas Group and build a hydrogen fuel cell power plant is also being considered. The companies will promote the conversion of vehicles operated by Beijing City and Beijing Gas Group to hydrogen vehicles, and to seek ways to convert Beijing Gas Group's CNG and LNG refuelling stations into hydrogen refuelling stations.
SK E&S in September 2021 announced it plans to produce 280,000 metric tons (mt)/year of blue hydrogen and 10mn mt/yr of green LNG by 2025. The company also plans to produce 30,000 mt/yr of liquid hydrogen and 7 GW of renewable energy.