SK Multi-Utility Begins Full Operation of LNG/LPG Cogeneration Power Plants

[MToday's Seemin Lee] SK Multitility said on the 13th that its 300-megawatt (MW) LNG/LPG combined heat and power plant in Nam-gu, Ulsan has completed the efficiency verification process and has entered the stable operation phase.

Completed the trial operation and stabilization, which began in late 2025, after about 40 months of construction since the start of the project in July 2022.

A combined heat and power (CHP) plant is a facility that produces electricity and steam simultaneously using a single fuel, maximizing energy efficiency.

This power plant, which started operations by SK Multicraft, was built on a site of about 39,000 square meters and is equipped with one gas turbine, one steam turbine, and one heat recovery steam generator (HRSG).

This power plant can supply 2.412 million MWh of electricity per year and 1.82 million tons of steam with its 300-megawatt equipment.

The power capacity is enough for about 670,000 households of four people to use for a year, which is comparable to the number of households in Daejeon Metropolitan City (690,000 households).

Steam is also at a level that can stably support the petrochemical processes in Ulsan Mipo National Industrial Complex.

The power plant uses two types of fuel: LNG and LPG. SKMU has established a low-carbon energy system that reduces environmental load compared to existing coal-based facilities.

The new development facilities are equipped with a dual-fuel system that can use both LNG and LPG. According to the company, this allows selecting the most favorable fuel in terms of cost, depending on seasonal and market price fluctuations and supply conditions, thereby enabling energy supply to customers at more stable and predictable costs.

When LNG prices surge, they switch to LPG to operate gas turbines, and when LPG supply becomes difficult, they switch back to LNG.

The power and steam produced through the facilities are expected to be supplied to existing customers such as SK Chemical, Dow DuPont Advanced Materials, KET, and companies within the Ulsan Mipo National Industrial Complex.

SKMU is poised to contribute to enhancing the production stability and improving cost efficiency of local companies in Ulsan by ensuring a stable power and steam supply within the industrial complex.

Kim Nam-gyu, CEO of SK Multicraft, said, "In a situation where economic downturns and uncertainties are increasing in each industry, reducing power costs such as electricity can become an important factor in improving manufacturing efficiency and cost competitiveness." He added, "We will actively utilize the equipment's characteristics of a dual-fuel system, and continue to implement strategic fuel operations and enhance power generation efficiency, aiming to establish a sustainable energy ecosystem within the industrial complex."

Meanwhile, since Ulsan City was designated as a specialized area for distributed energy in December last year, SK Multi Utility was selected as a distributed energy provider. SK Multi Utility has now secured the institutional basis to supply cheaper electricity to companies within the Mipo National Industrial Complex than before.