This paper presents and discusses the successful operating experience and the issues related to burning low sulphur waxy residual (LSWR) fuel oil at the 507 MW IPP Daesan Combined Cycle Power Plant. The power plant was built and is operated by Hyundai Heavy Industries (HHI). It comprises four Siemens-Westinghouse 501D5 engines, each with a heat recovery boiler including supplementary firing and one steam turbine. This plant, commissioned in 1997, is designed to burn LSWR fuel oil. LSWR fuel oil was selected because of the lower fuel cost as compared to LNG and other liquid fuels available in Korea. By adding a combustion improver to the LSWR fuel oil it is possible for HHI to comply with the tight Korean environmental regulations, despite the tendency for heavy smoke and particulate emissions when burning this type of fuel oil. The successful operating experience, availability, reliability and performance achieved in Daesan, as well as the commercial viability (which by far offsets the additional capital expenditure and the additional related O&M costs) demonstrate that LSWR fuel oil firing in heavy duty gas turbines is rewarding. This is especially important in view of the growing disposal problems of residuals at refineries around the world.