South Korea’s SK Innovation and SK E&S have officially completed their merger, launching a new entity on November 1.
Following the announcement in July, the companies have concluded the preparation process over the last three months, creating what they say is the largest private comprehensive energy company in the Asia-Pacific region, with assets totaling 105 trillion won ($76.2 billion) as of the first half of this year.
The new company, SK Innovation E&S, has about 2,163 employees.
On the same day, SK Innovation’s board of directors finalized the merger procedures with its subsidiaries, SK On, and SK Trading International.
The company plans to complete the merger with SK Enterm by February 1 next year.
“With this strategic move, SK Innovation aims to establish a robust portfolio that encompasses both current and future energy sectors, including petroleum energy, chemicals, LNG, power, batteries, and renewable energy,” it said.
SK E&S
SK E&S was spun off from SK innovation in 1999 to become a city gas holding company, and since then the company has become the “leading private LNG operator” in South Korea.
In 2021, investment company KKR purchased 2.4 trillion won ($1.74 billion) worth of newly issued redeemable convertible preferred shares of South Korea’s SK E&S.
During the same year, SK E&S revealed ambitious plans for its LNG and hydrogen business by 2025.
The company aims to produce 280,000 tons of hydrogen, 7 GW of renewables, and 10 million tons of “low-carbon” LNG by 2025.
Also, it aims to grow into a major global LNG provider that would supply 6 million tons and 10 million tons of LNG by 2023 and 2025, respectively.