KUALA LUMPUR: South Korea's SK Group is in the midst of discussion with Petroliam Nasional Bhd (Petronas) for potential joint ventures in petrochemical and renewable energy projects.

Yu Jeon Joon, President and Chief Executive Officer of SK E and S, an energy arm of SK Group, said the conglomerate could also invest in Petronas' Refinery and Petrochemical Integrated Development (RAPID) in Pangerang, Johor.

He said both companies already had serious discussions in the areas of renewable and petrochemicals, “One of our affiliates is already talking (on a) potential joint venture in petrochemicals... into RAPID,” he told reporters after the signing of a memorandum of understanding (MoU) between SK Group and Malaysia, here today.

RAPID is a US$27 billion project located between the Straits of Melaka and the South China Sea, conduits for Middle East oil and gas bound for China, Japan and South Korea.

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

Yu also 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.

Under the MoU, which was witnessed by Prime Minister DatukSeri Najib Tun Razak, SK Group and the Malaysian government agreed to explore collaboration in energy, green technology, telecommunications and urban development.  

The conglomerate will set up a regional office in Malaysia covering Southeast Asia, India and the Middle East, which would also compliment the Malaysia's National Blue Ocean Strategy. - Bernama