South Korea’s SK E&S said it has signed a strategic cooperation agreement with China’s Beijing Gas Group to work on LNG and hydrogen projects in China.
According to a statement by the unit of South Korean conglomerate SK Group released on Thursday, the two firms plan to explore opportunities for joint cooperation to expand the LNG value chain in China.
SK E&S and Beijing Gas agreed to share their operational know-how on LNG terminals in China and cooperate further on LNG imports and natural gas sales, the statement said.
Beijing Gas is building a huge LNG terminal with ten 220,000-cbm LNG tanks in the Tianjin south port industrial zone. It plans to launch the first phase of the facility in the fourth quarter of 2022.
The two partners plan to use the LNG import facility to produce blue hydrogen based on carbon capture, utilization, and storage (CCUS) technology, SK E&S said.
Also, the duo aims to produce green hydrogen, build hydrogen fuel cell power plants, and mix hydrogen into natural gas pipes, the statement said.
SK E&S also said it would promote the conversion of vehicles in Beijing to hydrogen vehicles and seek ways to convert Beijing Gas’ CNG and LNG stations to hydrogen.
Last 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, 7GW of renewables and 10 million tons of “green” LNG by 2025.
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.