SK Energy delays expansion

SK Energy, South Korea’s top refiner, delayed its plan to spend 1.5 trillion won (US$1.3 billion) to expand its heavy oil plant in Incheon that will enable it to convert heavy oil into transportation fuel until 2016. SK Energy plans to spin off its petroleum and chemical operations next year. Under the plan, SK Energy will have three wholly owned units, including SK Lubricants Co., which was set up in September last year. Sources predicted that the sale of the money-losing plant in Incheon will ease the financial burden on the planned petroleum unit. (December 29, 2010)