SK Group in talks with Petronas on JVs

South Korea’s SK Group is in the middle of discussion with Petroliam Nasional Bhd (Petronas) for potential joint ventures (JVs) in petrochemical and renewable energy projects.

Yu Jeong Joon (picture), president and CEO of SKE & S Co Ltd — an energy arm of SK Group, said the conglomerate could also invest in Petronas’ Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.

He said both companies have already had serious discussions in the areas of renewable and petrochemicals.

“One of our affiliates is already talking (on a) potential JV in petrochemicals…into Rapid,” he told reporters after the signing of a memorandum of understanding (MoU) between SK Group and Malaysia in Kuala Lumpur last Friday.

SK Group is a Fortune 100 company and the second-largest conglomerate by market capitalisation in South Korea.

Yu said SK Group is also looking into the possibility of teaming up with Petronas on liquefied natural gas (LNG) projects.

South Korea is the world’s third-biggest LNG importer, while Petronas is the third-biggest LNG producer.

“Petronas has been our long-time partner and friend. We have been buying crude oil from them for the last 25 years and also we’ve been buying LNG (from Petronas), so the relation and history with Petronas has been really long.

“We want to (have) a more strategic relation… joint investment or joint collaboration to develop the business together,” Yu said.

The conglomerate will set up a regional office in Malaysia covering South- East Asia, India and the Middle East. — Bernama