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Biz News Korea(Eng)
SK E&S activates Korea’s first U.S. shale gas-fueled power plant
- Collected
- 2017.02.02
- Distributed
- 2017.02.03
- Source
- Go Direct
The generator with capacity to produce 1,823 megawatt power runs on shale gas imported from the U.S. SK E&S imported 66,000 tonnes of natural gas from Cheniere Energy Inc.`s Sabine Pass LNG export terminal in Louisiana. The fuel has been used to run the new Paju LNG Power Plant.
Shale gas is natural gas yield from shale formations instead of other rock strata such as limestone or sandstone.
SK E&S expects to save production cost as it saves cost by directly importing instead of going through state distributor Korea Gas Corp. (KOGAS). It plans to improve price competitiveness by securing long-term supplies.
Its contract with Chevron secures the company with annual supply 800,000 tonnes from Gorgon, Australia for the next five years. Its contract with Freeport LNG Corp. ensures 2.2 million tonnes of LNG annually from 2019.
By Jung Wook
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