Seoul: SK Innovation E and S, the energy division of South Korea's SK Group, announced that it has successfully shipped liquefied natural gas (LNG) to South Korea from an Australian offshore gas field. This marks the first instance of a private South Korean company producing LNG through an overseas resource development initiative.
According to Yonhap News Agency, the company began extracting LNG last month at the Barossa gas field, positioned about 300 kilometers off Australia's northwestern coast. The initial shipment of LNG was transferred to the Darwin LNG terminal for liquefaction and subsequently shipped to Japan. A subsequent batch, intended for South Korea, was also liquefied at the Darwin facility, SK Innovation E and S revealed in a press release.
SK Innovation E and S anticipates securing 1.3 million metric tons of LNG annually from the Barossa field over the next two decades. This volume accounts for around 3 percent of South Korea's yearly LNG imports, as per the company. "The projected LNG volumes will help the country better cope with uncertainties in the global energy market, which remains vulnerable to geopolitical risks, including international disputes," the company stated.
The company acquired a 37.5 percent stake in the Barossa project back in 2012. Australian energy producer Santos holds a 50 percent stake, while Japan's largest power generator JERA owns the remaining 12.5 percent. The trio has collectively invested approximately 2 trillion won (US$1.6 billion) in the project, covering everything from gas reserve assessments to the construction of production facilities.