First Step in Carbon Storage at Empty Donghae Gas Field... Korea National Oil Corporation Signs Demonstration Contract with Hyundai Construction

Pre-Contract for Korea's First CCS Demonstration Project with Hyundai Engineering & Construction
Annual Injection of 1.2 Million Tons, Establishment of Transport and Storage Infrastructure

The national grand project of storing captured carbon dioxide in the Donghae Gas Field has taken its first step.

Korea National Oil Corporation (President Kim Dong-seop) announced on the 13th that it signed a contract with Hyundai Engineering & Construction on the 12th to carry out the 'Pre-FEED for the Donghae Gas Field Utilization CCS Demonstration Project.'

This demonstration project is a project to capture, transport, and store 1.2 million tons of carbon dioxide annually in the depleted Donghae Gas Field. It aims to achieve the national greenhouse gas reduction target (NDC) and to commercialize technology through safe and economical CCS realization.

This project, which attempts the first commercial CCS in Korea, is scheduled to proceed from 2025 to 2030.

On June 1, under the Ministry of Trade, Industry and Energy, an application was made for the preliminary feasibility study for the 'Donghae Gas Field Utilization CCS Demonstration Project.' The Oil Corporation plans to collaborate with Hyundai Engineering & Construction, which has experience in CCS-related projects, to promote the pre-basic design for supporting the preliminary feasibility study starting at the end of July and for the successful launch.

Production facilities of the Donghae Gas Field operated by Korea National Oil Corporation.

The Donghae Gas Field, located 58 km southeast of Ulsan, was discovered in 1998 and began production in 2004. Gas production was finally terminated on December 31, 2021, making it the only domestic oil resource production facility.

The reservoir, where natural gas has been depleted, has accumulated data obtained during exploration, development, and production processes, and has secured sufficient storage capacity, making it an optimal site for carbon dioxide storage.

Through this contract, the Oil Corporation and Hyundai Engineering & Construction plan to install new facilities such as a hub terminal and pipelines in addition to existing facilities like offshore platforms and subsea injection facilities that were operated during natural gas production.

Both organizations will conduct pre-basic design targeting infrastructure in both land and sea areas necessary for carbon dioxide transport and storage, deriving design specifications and conceptual designs, and establishing standards required to proceed with the Donghae Gas Field CCS project, including technical specifications for each process, lists of necessary equipment, permits and approvals, and project costs.

Additionally, through this project, they plan to advance core technologies in the domestic carbon dioxide underground storage field, enhancing national competitiveness across the entire CCS sector, from design and construction to operation of carbon dioxide storage facilities.

An official from the Oil Corporation emphasized, "This marks the first step of the full-scale project, and we will carry out the tasks without any setbacks to lay the foundation for Korea's first CCS demonstration project."

This content was produced with the assistance of AI translation services.