E1 – A Platinum Industry Sponsor of the 21st World LP Gas Forum, Seoul, Korea
Interview with J.Y. Koo, President and CEO, E1
WLPGA: Tell us a little bit about E1
Mr. J.Y. Koo: E1 is a major LP Gas import and distribution company in Korea, providing more than 50 % of the imported LP Gas in Korea. The company began large-scale import of LP Gas for the first time in Korea. E1 is an affiliate of the LS Group after separating from the LG Group in 2003.
The company imports LP Gas through a long-term contract with major oil-producing countries in the Middle East including Saudi Arabia, UAE, and Kuwait. With a nation-wide distribution and sales network, E1 supplied 2.5 million tons of LPG domestically and exported 1.7 million tons to China, Japan, Vietnam and Taiwan, recording a sale of 2,630 billion won in 2007.
In an effort to expand its business, E1 is currently participating in the LP Gas development business in Indonesia after taking over a sportswear company LS Networks, and its well-known brand, Pro-specs. Moreover, the company advanced into other business areas such as the construction of a container terminal in Incheon, Korea and logistics.
E1, headquartered in Seoul, has the Asia’s first underground storage cavern (with a capacity of 153,000 tons) in Yeosu, the world’s first undersea storage cavern (with a capacity of 242,000 tons) in Incheon. We are operating six local branches in major cities in Korea and overseas branches in Bahrain, Jakarta and London.
WLPGA: What does the World LP Gas Forum mean to your company?
Mr. J.Y. Koo: We are very pleased to support the World LP Gas Forum which will be held for the first time in Korea. Distribution of LP Gas in Korea progressed at a rapid speed after E1 (previously known as LG-Caltex Gas) began its large-scale distribution business in 1984. Along with that, relevant industries also developed significantly.
We hope this upcoming forum will serve as a significant event where people from the LP Gas industry and governments, research institutions and media will gather and share their wisdom to overcome the current difficulties. Recently, ‘Green growth with low-carbon’ is emerging as a new social issue in Korea. As many studies show, LP Gas is an excellent fuel with similar or less CO2 emissions compared to Diesel. We therefore expect LP Gas to play a role in realizing ‘Green growth with low-carbon’ and that will be a new opportunity for the LP Gas industry.
WLPGA: What are the priorities for LP Gas companies today and in the future?
Mr. J.Y. Koo : The objectives and priorities may differ from country to country and from region to region. The top priority of LP Gas companies today is to increase of demand for LP Gas.
For example, we are focusing on enhancing price competitiveness and developing automobile technologies to maintain the current demand for LP Gas and create new demand.
The second tax reform for transport fuels in recent days helped us to secure a competitive tax system and the industry is making efforts to improve the distribution system. Moreover, we are working hard to develop an advanced automobile technology with a local car manufacturer. In particular, we expect that the LP Gas hybrid vehicle, which will be put on the market soon, will increase the demand for vehicles running on LP Gas.
At a global level, the possibility of LP Gas as a solution for climate change is one of the top priorities. The outcome of adapting to this new energy paradigm will determine the future of the global LP Gas industry.
This makes the forum all the more important.
