K-Power Celebrates Construction Completion of Its Kwangyang CCPP
- 1074MW, two-Unit Kwangyang CCPP to enter into full operation as Korea’s first merchant plant
- Construction completion ceremony to be held at Vista Hall, Walkerhill Hotel at 5:30PM on September 7, attended by 250 VIPs including deputy minister of MOCIE, chairman of Commerce, Industry & Energy Committee of National Assembly and industry officials
K-Power (Representative Director: Young Duk Park) successfully completed construction of Unit#1 and Unit#2 of its 1,074MW, LNG-fired Kwangyang Combined Cycle Power Plant in Kwangyang National Industrial Complex, South Jeolla Province with the investment cost of KRW680 billion and entered into commercial operation in May. To celebrate the successful commercial operation and construction completion, K-Power held a construction completion ceremony with many guests at Vista Hall, Walkerhill Hotel, Seoul, Korea on 7 September 2006.
K-Power, a joint venture invested by SK Corporation, Korea’s leading energy company (65%) and UK-based BP, one of world’s three oil and gas majors (35%), is Korea’s first merchant plant which imports LNG directly from Indonesia’s Tangguh, generates electricity and sells it through Korea Power Exchange.
Even without a long-term PPA (Power Purchase Agreement), K-Power successfully concluded a project financing deal to fund 60% of its total project cost from 13 financial institutions including Korea Development Bank. With the aim of investment cost saving K-Power signed a turn-key contract with Daelim Industrial Company for successful Plant construction and an O&M deal with GE, gas turbine provider for efficient Plant operation.
Meanwhile, at the ceremony 25 people won official commendation for their outstanding contribution to industry development and stable domestic energy supply through various activities – direct import of LNG, an incredible rare record of achievement of 4-million safety manhours during construction and successful Plant construction. Awards given to the people include the following:
- Iron Tower Order of Industrial Service Merit: 1
- Tin Tower Order of Industrial Service Merit: 1
- Industrial Service Medal: 3
- President’s Citation: 4
- Prime Minister’s Citation: 6
- Commerce, Industry and Energy Minister’s Citation: 10
Notes to editors:
- K-Power Company Limited is a Korea’s first merchant Independent Power Producer (IPP), with the capacity of 1,074MW gas-fired combined cycle power plant. The plant which began full commercial operations in May this year is located near Kwangyang City on the southern coast of Korea.
- K-Power is a merchant power plant, and will operate competitively in the electricity pool market. The power plant is 65% owned by SK corporation of South Korea and 35% by Korea Energy Investment Holding (KEIH), a wholly owned subsidiary of BP plc of the United Kingdom.
- K-Power is a major part of BP’s Alternative Energy business portfolio, which combines all of BP’s interests in zero- and low-carbon power generation: wind, solar, hydrogen power projects and gas-fired power generation.
- The successful project completion and the beginning of commercial operations at the plant are notable achievements for the following reasons:
- The Project is the first power plant in Korea to have the ability to independently import Liquefied Natural Gas (LNG) for its own use creating an alternative channel for importing fuel into Korea outside the traditional Korea Gas Corporation (KOGAS) route.
- The Project is the first power plant in Korea to conduct a full-scale international commercial tender for LNG importation.
- The Project is the first IPP project in Korea to be developed and project financed without fixed electricity offtake contracts. The project obtained KRW 440billion non recourse project financing with Korea Development Bank as Co-ordinating Lead Arranger for the transaction, with 12 domestic financial institutions joining as participating arrangers
- The project achieved 4-million safety manhours during construction without a day away from work incident
- The power plant has been built under a turnkey contract with Daelim Industrial Company, and will be operated under an O&M agreement with GE. The plant will import LNG directly from Indonesia’s Tangguh consortium and will generate electricity and sell it through the Korea Power Exchange.
