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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] SK Innovation E&S has officially initiated the process to monetize a 50% stake in the Boryeong LNG Terminal in South Chungcheong Province, aiming to raise over KRW 600 billion in cash while continuing to utilize the facility as a key LNG hub.
According to industry sources on July 7, SK Innovation E&S, with Standard Chartered Securities as its advisor, has distributed investment teasers to potential buyers. The company plans to complete the competitive bidding process and finalize the deal within this year.
Currently, the Boryeong LNG Terminal is a 50:50 joint venture between SK Innovation E&S and GS Energy. The facility, valued at over KRW 2 trillion, could yield SK Innovation E&S between KRW 500 billion and 600 billion upon stake sale, thanks to its strategic significance and scarcity in the LNG infrastructure market.
Established in 2013 and operational since 2017, the terminal features seven 200,000 kL LNG storage tanks and one 45,000 kL LPG storage tank. It plays a vital role in storing and regasifying LNG and LPG for delivery to power plants and petrochemical clients.
Key users of the terminal include group affiliates such as SK E&S, Paju Energy Service, Narae Energy Service, GS Energy, GS Caltex, and GS EPS. Both SK and GS have long-term contracts for 3.5 million tons of LNG and LPG usage, respectively, ensuring stable revenue via fixed lease payments.
Even after the stake sale, SK Innovation E&S plans to retain long-term usage rights for the terminal, maintaining a strategic partnership with GS Energy. The move is part of a broader strategy to improve financial flexibility while preserving the Boryeong facility as a core asset within its LNG value chain.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
