Dear Valued Stakeholders,

The year 2024 was a meaningful period in which we laid the groundwork for a leap forward based on new businesses. Although financial performance was challenged by limited trading opportunities and investment-related risks, we were able to achieve remarkable outcomes by expanding existing operations and launching new businesses under the vision of becoming a "Net Zero Solution Provider," thanks to the collective efforts of all our employees.

Domestic demand and sales volume for transport-use LPG turned upward in 2024, driven by the launch of LPG 1-ton trucks. The growing market for LPG 1-ton trucks is expected to lead the broader civilian LPG market going forward. In addition, SK Gas continues efforts to respond to the evolving market paradigm through wego, Korea’s first propane distribution innovation platform, further strengthening our competitiveness in the LPG market.

In the second half of 2024, our LNG terminal KET and GPS, the world’s first gigawatt-scale LNG-LPG hybrid power plant, began commercial operations. Through these new LNG and power generation businesses, we secured additional growth potential. The completion of the LNG value chain from import, storage, and supply to power generation will serve as a foundation for the transition to low-carbon energy.

New businesses aimed at future growth are also showing tangible results. Lotte SK Eneroot, a joint venture established with Lotte Chemical, secured four hydrogen fuel cell project rights including CHPS and RPS, laying the groundwork for the future. By the second half of 2026, 78 MW of by-product hydrogen fuel cells are expected to be operating in Ulsan, making it the largest single-operator hydrogen fuel cell business in Korea.

Additionally, in collaboration with APEX, a U.S. renewable energy developer, and our affiliate SK Eturnics, we established a JV and launched the first 100 MW ESS project in the U.S. at the beginning of this year. A second project of the same scale is scheduled to begin construction in the second half of the year. Based on these achievements, we plan to continue expanding our carbon-free business portfolio.

In the ESG domain, 2024 marked the first year of ESG Master Plan 2.0 (2024 2026), through which we advanced a wide range of initiatives across Environment (E), Social (S), and Governance (G). On the environmental front, we are continuously reviewing implementation plans to achieve our 2030 Net Zero Roadmap, including not only long-term energy procurement through PPA but also direct reduction through the introduction of seawater heat exchangers. On the social front, we conduct annual human rights impact assessments, establish and implement response measures, and monitor their effectiveness to enhance our human rights management system. On the governance front, we are working to enhance risk management by establishing an integrated enterprise risk management system encompassing both financial and non-financial risks, and by implementing a reporting process to the Board of Directors.

Our efforts to embed ESG management have been externally recognized. We were awarded the highest AAA rating by MSCI for the second consecutive year and received a Leadership A rating from CDP for carbon emissions.

The management goal of SK Gas for 2025 is “Build the Basics, Shape the Future.” We will strengthen operational capabilities in our existing businesses and pursue "Operational Excellency" in our new LNG and power ventures. At the same time, we will continue our efforts to realize our vision of becoming a "Net Zero Solution Provider."

SK Gas remains committed to delivering value to all stakeholders through sustainable management and to building a better future. We sincerely ask for your continued support and interest.

Byung Suk Yoon, CEO of SK Gas