SK E&S announced to have signed a Strategic Collaboration Agreement (SCA) with Beijing Gas Group for the LNG and hydrogen business.
Beijing Gas Group, a subsidiary of Beijing City, is the largest natural gas operator in China’s Hebei region.
Through this SCA agreement, the two companies decided to establish a strategic cooperative relationship in the field of LNG and hydrogen business in China.
First, they plan to explore opportunities for joint cooperation to expand the LNG value chain. To this end, 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. We also decided to share our long-term portfolio strategy for future LNG businesses.
In the hydrogen field, they are promoting cooperation throughout the value chain, from production to securing demand decided to do In the hydrogen production field, a plan to produce blue hydrogen by applying CCUS (carbon capture, storage and utilization) technology using the Tianjin LNG terminal under construction by Beijing Gas Group, and to produce green hydrogen in connection with a new renewable energy project, etc.
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 considered. It is also decided to promote the conversion of Beijing City and Beijing Gas Group vehicles to hydrogen vehicles and seek ways to convert Beijing Gas Group’s CNG (compressed natural gas) and LNG refuelling stations into hydrogen refuelling stations.
After signing the SCA, the two companies plan to form a joint working-level promotion team to explore specific projects.
SK E&S explained that this SCA signing is meaningful in that it has prepared a bridgehead to expand its influence in the Chinese natural gas and hydrogen market, which is expected to grow explosively in the future, by strengthening cooperation with Beijing Gas Group, a core business partner in China.