South Korean telecom-to-energy conglomerate SK Group said Thursday it plans to invest 1.8 trillion won ($1.56 billion) in the United States over the next five years, while forging an agreement to expand partnership on energy development.

SK Group Chairman Chey Tae-won attended a signing ceremony of a memorandum of understanding on strengthening strategic partnership with US firms, GE and Continental Resource on shale gas production in US and also seeking global marketing opportunities for fuel sales. The agreement comes as part of SK’s investment plan in the US, and the group will seek potential investment opportunities worth 3-5 trillion won, it added.

SK’s partnership with GE secures joint business opportunities to enter markets in Asia, South America and Africa, it said in a statement.

Under the partnership, SK is to take charge in supplying liquefied natural gas and liquefied petroleum gas, while GE provides equipment for power generation. The companies also agreed to collaborate on renewable energy development in Southeast Asia and the Middle East.

“To have sustainable business cooperation, (taking) a win-win business model is a prerequisite course,” said Chey at a signing ceremony held in Washington. The South Korean tycoon is a business delegate on President Moon Jae-in’s official trip to the US.

“The agreement signed by South Korean company SK and US companies GE and Continental is significant as it is a base for a high level global partnering model of which not only businesses from the two countries but also governments could benefit from shale gas development in US,” he said.

The agreement was signed by Yu Jeong-joon, president of SK E&S, GE Vice Chairman John Rice and Continental Resources Chairman Harold G. Hamm.

On shale gas production in the US, SK also agreed to expand joint exploration of shale gas in the US with Continental Resource, a US oil and natural gas exploration and production company headquartered in Oklahoma.

SK E&S, the group’s gas and power unit, acquired 49.9 percent in a local gas field owned by Continental in 2014, and forged a partnership for gas exploration. From the deal, SK has secured approximately 38 million metric tons of natural gas, more than the 33 million metric tons imported by South Korean companies in total last year.

By Cho Chung-un (christory@heraldcorp.com)