SK E&S is strengthening cooperation with Australia to facilitate the development of LNG resources and the production of blue hydrogen using carbon capture and storage (CCS) technology.
SK E&S announced on Feb. 5 that SK E&S President and CEO Choo Hyung-wook and Australian Resources Minister Madeleine King met at the SK Serene Building in Jongno, Seoul, on Feb. 2 to discuss the Barossa Gas Field Project, in which SK E&S is participating, and cooperation on the Korea-Australia CCS business.
SK E&S plans to apply its already commercialized CCS technology to the Barossa Gas Field, which it has been developing since 2012, to produce low-carbon LNG and introduce an average of about 1.3 million tons per year into the country to be used for blue hydrogen production.
During the development of the gas field, construction was somewhat delayed due to some aboriginal lawsuits, but the Australian court recently ruled to resume construction, and the project is gaining momentum. The industry expects the Barossa Gas Field to contribute significantly to stabilizing LNG supply and strengthening energy security when production begins after 2025.
In a meeting with Minister King on February 2, Choo expressed his appreciation for the efforts of the Australian government to improve the licensing system and requested the government's active support and attention in the process of resource development in Australia.
Minister Madeleine King responded that "the Australian government is working on reforming offshore gas regulations to provide greater certainty for producers and communities."
"The support of the Australian government, including the signing of agreements to enable cross-border CO2 transfers, is essential to facilitate the introduction of low-carbon LNG and the production of blue hydrogen," said President. Choo.
SK E&S is in multilateral negotiations with Australia and Timor-Leste to bury CO2 captured from natural gas and blue hydrogen production in the Bayu-Undan depleted gas field in Timor-Leste, near Australia.
In November of last year, Australia passed legislation to ratify an amendment to the London Protocol that would enable transboundary transfers of CO2. This means that Australia, which has the world's largest CO2 storage capacity, will be able to export and import CO2. This is a green light for the domestic CCS industry, as it creates an environment where countries like Korea that have not had storage space for capturing CO2 can promote CCS in earnest.
"Australia is an important ally for Korea's energy security based on its favorable investment environment and geographical proximity," said Choo Hyung-wook, President of SK E&S. "SK E&S will continue to promote the introduction of low-carbon LNG and domestic blue hydrogen projects to strengthen the energy partnership between the two countries."
