May 08, 2024

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[THE INVESTOR] SK Holdings, the holding unit of SK Group, said on Sept. 27 it has decided to invest 119.5 billion won (US$100 million) in Eureka Midstream, a US shale gas transportation and processing company.

Morgan Stanley, the major shareholder of Eureka, has reportedly decided to sell its stake to SK to develop a strategic partnership. 

With the latest investment, SK is expected to strengthen the whole value chain encompassing the development, transport and supply of natural gas in the US.

Eureka, based in Houston, Texas, currently operates Pennsylvania’s Marcellus and Ohio’s Utica, where North America’s largest natural gas reservoirs are located. The company owns pipelines capable of transporting 17 million tons of natural gas per year. The company is also considered to have a high profit margin of 66 percent before write-offs.

By Alex Lee (alexlee@heraldcorp.com)