GS Group expands opportunities in the US energy market

GS Group, a South Korean energy and engineering giant, has laid out plans to reinforce the competitiveness of its major businesses, discover unique growth engines and expand overseas projects.

“Since its launch, GS has consistently pushed toward overcoming the limits of the domestic market to expand its business territory and adopt global strategies to create more jobs,” said GS Group Chairman Huh Chang-soo.

GS Group has been solidifying its foothold as a representative exporter, well-illustrated by GS Caltex, which earns two-thirds of its revenue overseas. This was possible through consistent investment in oil, petrochemicals and lubricants. Korea’s second-largest oil refiner was established in 1967 by Caltex of Chevrolet and GS. 

Last year, GS Caltex became Korea’s first oil refiner to import oil from the US after it lifted its ban on oil exports in 2015.

Throughout last year, the company imported a total of 2.4 million barrels of US oil, starting with 400,000 barrels in March 2016 and 2 million more barrels between November and December 2016. GS Caltex plans to add another 2.4 million barrels of US oil later this year, according to the company.

Starting in 2019, GS Group, with its affiliate GS EPS, will also begin importing 600,000 barrels of US shale gas annually for $2.2 million, for use at GS Caltex’s plant in Yeosu, according to the company.

In 2012, GS Global, together with GS Energy, bought a 40 percent stake held by Texas-based gas company Longfellow Energy. It is currently developing oil wells in the Nemaha oil fields in Oklahoma.

The group’s footing in the US market is also likely to be boosted, as the group’s chairman is part of the business delegation accompanying South Korea’s President Moon Jae-in to the US this week. 

By Shim Woo-hyun (ws@heraldcorp.com)