By OGJ editors
HOUSTON, Jan. 2 -- BP PLC has agreed to join refiner SK Corp. of South Korea in ownership of a 1,074 Mw gas-fired, combined cycle power plant currently under construction in Gwangyang, South Korea that is slated to begin operations in 2006.
Under an agreement signed Dec. 23, BP will acquire a 35% interest in SK Power, which is constructing the $600 million plant. SK Corp. established SK Power to develop, finance, construct, operate, and maintain the power plant, in which it will retain a 65% interest.
The project is the first privately owned generation facility being developed to compete in Korea's liberalized electricity generation industry. The plant, which will require more than 600,000 tonnes/year of LNG, is adjacent to an LNG receiving terminal that steel maker POSCO is developing.
Under an earlier announced agreement, Tangguh LNG project in Indonesia will supply as much as 1.35 million tonnes/year of LNG to SK Power and POSCO at the terminal (OGJ Online, Dec. 5, 2003). Both contracts are expected to be finalized in early 2004.
Daelim Industrial Co., Seoul, is the engineering, procurement, and construction contractor for the power plant, which will employ GE Power Systems' MS7001FA gas turbine technology.
