South Korea’s liquefied petroleum gas (LPG) company SK Gas is working on importing LPG made from US shale gas. The import decision is seen as a way to diversify import sources and cut costs as SK Gas’ major local rival, E1, recently decided to import LPG made from US shale gas, starting in 2014. While E1 imports shale gas-based LPG to sell it to consumers, SK Gas intends to use the imported gas as a base material for its petrochemical products to be manufactured under its new business plan in addition to sales for consumers.
“We are pushing ahead with the propane dehydrogenation (PDH) business in which LPG is one of the essentials and plan to adopt US shale gas-based LPG for the new business,” said an official of SK Gas Sunday. The plan, however, comes with a prerequisite that prices of LPG made out of US shale gas remains lower than those of the gas from the Middle East at a point when the company begins the PDH business.
“If we import LPG produced from US shale gas, the imports will commence sometime after 2014, when the expansion of Panama Canal is completed,” said the official. Once the expansion project is accomplished, a transport of US shale gas to Korea will take a shorter time of 30 days than the current 50 days.
For full article see Maeil Business.