SK Innovation and SK E&S officially completed their merger on Nov. 1, becoming the largest privately owned energy company in the Asia-Pacific region. The merged entity, called SK Innovation, has combined assets of 105 trillion won ($76 billion).
The integrated company boasts an extensive portfolio that builds on SK Innovation’s expertise in petroleum and chemicals and SK E&S’s leadership in liquefied natural gas (LNG). The LNG value chain, in particular, is expected to ensure stable profitability for the company, serving as a strong foundation for future investments. Despite uncertainty in the energy market, LNG has helped SK E&S to generate over 1 trillion won in annual operating income.
SK E&S will operate as a Company-in-Company (CIC) within SK Innovation under the new name SK Innovation E&S. Following the merger announcement in July, SK Innovation established an Integrated Synergy Promotion Team to drive specific commercialization efforts in areas such as the LNG value chain, trading, hydrogen, and renewable energy.
The company is considering building a self-generation facility at the SK Ulsan Complex (CLX), with plans to directly import LNG. SK Innovation is also involved in a project to secure and utilize natural gas condensate from Australia’s Barossa gas field.
SK Innovation also completed the merger between SK On and SK Trading International on this day. The merged company will be named SK On Trading International. The energy company will finalize the merger of SK On and SK Enterm by February next year.
