SK E&S Strengthens Partnership with Australia for Resource Development and CCS Projects

President Choo Hyung-wook Meets with Madeleine King, Australian Minister for Resources
Requests Support for Barossa Gas Field and CCS Project 추진

Chu Hyung-wook, CEO of SK E&S, is shaking hands with Madeleine King, Australian Minister for Resources (left in the photo), at the SK Seorin Building in Jongno-gu, Seoul on the 2nd. Photo by SK E&S

SK E&S has strengthened cooperation with Australia to facilitate the smooth advancement of blue hydrogen production by applying LNG resource development and CCS (carbon capture and storage) technology.

On the 2nd, SK E&S announced on the 4th that Choo Hyung-wook, President and CEO of SK E&S, and Madeleine King, Australian Minister for Resources, met at the SK Seorin Building in Jongno-gu, Seoul, to discuss the Barossa gas field project and CCS business cooperation in which SK E&S is participating.

Since 2012, SK E&S has been involved in the development of the Barossa gas field and plans to produce low-carbon LNG (liquefied natural gas) by applying already commercialized CCS technology, importing about 1.3 million tons annually to Korea for blue hydrogen production. Although construction was somewhat delayed due to some indigenous lawsuits during the gas field development process, the Australian court recently ruled to 'resume construction,' accelerating the project. The industry expects that once production at the Barossa gas field begins after 2025, it will significantly contribute to stabilizing LNG supply and strengthening energy security.

During the meeting with Minister King on the 2nd, President Choo expressed gratitude for the Australian government's efforts to improve the licensing system during resource development in Australia and requested active support and interest from the Australian government. In response, Minister Madeleine King said, “The Australian government is working on reforms to offshore gas regulations to provide greater certainty to producers and local communities.”

President Choo also emphasized, “For the smooth introduction of low-carbon LNG and blue hydrogen production, support from the Australian government, such as concluding agreements enabling cross-border CO2 transport, is essential.” SK E&S is currently conducting multilateral negotiations with Australia and Timor-Leste to inject the CO2 captured during natural gas and blue hydrogen production into the depleted Bayu-Undan gas field near Timor-Leste. Minister King stated, “The Australian government is preparing to ratify the amendment to the London Protocol and has recently passed legislation in the Australian Parliament allowing cross-border CO2 transport for offshore storage, taking related measures.”

In November last year, Australia passed legislation to ratify the amendment to the London Protocol, enabling cross-border CO2 transport. As Australia possesses the world's largest CO2 storage capacity and has allowed CO2 export and import, countries like Korea, which had no storage space despite capturing CO2, can now actively promote CCS, signaling a positive outlook for the domestic CCS industry.

President Choo said, “Australia is an important ally for Korea's energy security based on a friendly investment environment and geographical proximity,” adding, “SK E&S will faithfully advance the introduction of low-carbon LNG and domestic blue hydrogen projects to contribute to strengthening the energy partnership between the two countries.”

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