HD Hyundai Oil Bank supplies sustainable aviation fuel (SAF) to Korean Air’s international flights to Japan. To the refinery, it is the first entry to the Korean SAF market.
HD Hyundai Oil Bank said on Sept. 22 the refinery struck a contract with Korean Air to supply SAF to the airliner’s Incheon-Gobe flight. The contract lasts from September 2025 until 2026.
HD Hyundai Oil Bank will supply a fuel for some 90 aircraft. In June 2024, the refinery has been recognized for its bio fuel technology power in the overseas market by becoming the nation’s first company to export SAF to Japan.
The contract takes on significance since HD Hyundai Oil Bank begins to commercially supply SAF before Korea makes the use of SAF obligatory in 2027.
The refinery plans to ramp up a strategic partnership with Korean Air, the nation’s largest airliner, through the supply and will further strengthen its presence in the SAF market.
HD Hyundai Oil Bank produces SAF through a co-processing method based on ISCC CORSIA.
The International Sustainability and Carbon Certification (ISCC) is an independent multi-stakeholder initiative and leading certification system supporting sustainable, fully traceable, deforestation-free and climate-friendly supply chains.
CORSIA stands for the Carbon Offsetting and Reduction Scheme for International Aviation.
The co-processing method is a process in which both petroleum and bio materials are put together into existing refinery facilities.
Starting this year, countries across the world make it mandatory to mix petroleum with SAF.
European countries plan to raise the SAF share from 2 percent this year to 70 percent by 2050. Japan plans to substitute SAF for 10 percent of aviation fuel sales by 2030.
On Sept. 19, the Ministry of Trade, Industry and Energy announced a regime to make it obligatory to mix oil with SAF from 2027.
An HD Hyundai Oil Bank official said, “the domestic market entry is expected to boost market reliability of bio fuel products, including SAF, and we will make efforts to expand exports by looking into SAF policies in Korea and abroad and demand changes based on preceding technology power.”
President Jeong Im-joo of HD Hyundai Chemical and Ronan Bescond, Vice President Long-Term Marketing & Origination at TotalEnergies, pose for a photo after HD Hyundai Chemical signed a contract to directly import LNG from TotalEnergies at HD Hyundai Chemical headquarters in Daesan, Chungcheongnam-do, on Sept. 24. (Photo: HD Hyundai Chemical)
HD Hyundai Chemical Becomes Nation’s 1st Petrochemical Company to Introduce LNG Imports
HD Hyundai Chemical, a joint venture between HD Hyundai Oil Bank and Lotte Chemical, has intensified efforts to ramp up unit price competitiveness by directly introducing liquefied natural gas from a global energy company.
HD Hyundai Chemical said on Sept. 24 the company struck a long-term contract to directly introduce LNG from TotalEnergies, a French integrated energy company.
A signing ceremony, which took place at HD Hyundai Chemical headquarters in Daesan, Chungcheongnam-do, was attended by President Jeong Im-joo of HD Hyundai Chemical and Ronan Bescond, Vice President Long-Term Marketing & Origination at TotalEnergies, and major officials of the two companies.
It is the first time that a Korean petrochemical company has signed a contract with a global company to directly import LNG from abroad.
Korean petrochemical companies have imported LNG via Korea Gas Corp. or large-sized energy companies.
Under the agreement, HD Hyundai Chemical plans to import LNG of 200,000 tons annually for eight years from January 2027 until December 2034.
The LNG imports will be utilized for a fuel of naphtha cracking centers, and they will have an effect of reducing fuel costs by 21 percent compared to those of blast furnace gas.
TotalEnergies is an integrated energy company with global supply networks in diverse areas, such as petroleum/gas, power, hydrogen and renewable energies.
HD Hyundai Chemical is expected to lay a foundation to expand global partnerships between the two companies on top of ramping up unit price competitiveness through the deal.
The direct importing of LNG via the KOGAS’s LNG terminal has become an exemplary private-public sector collaboration.
HD Hyundai Chemical will be able to manage efficient inventory using KOGAS’s LNG terminals in Incheon, Pyeongtaek, Tongyeong and Samcheok in a efficiently fashion.
HD Hyundai Chemical President Jeong said, “the direct introduction of LNG imports is a strategic decision-making strategy designed to ensure stable fuel imports and ramp up unit price competitiveness.
It will also intensify efforts to strengthen competitiveness in the global petrochemical market by continuously expanding with global energy companies.”
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