Energy solution provider, SK E&S Co., has reportedly announced an investment of $1.4 billion (approx. 1.6 trillion) for the development of a gas field in Australia. The move is aimed at supplying South Korea with 1.3 million tons of liquefied natural gas (LNG) for a period of two decades starting from 2025.
According to reports, the company announced on Tuesday that it has made the decision to invest in the Caldita-Barossa offshore gas field project, which holds a minimum of 70 million tons of Liquefied Natural Gas reservoir.
Meanwhile, the company also announced that it will be injecting a capital of 762.8 billion into its Australian subsidiary over the coming five years and secure the remainder of 900 billion through project financing.
It is to be noted that SK E&S will be first developing a gas field in Barossa, where nearly 70 million tons of natural gas has been reserved, which would more than double South Korea’s 40 million tons of annual gas consumption.
The company expects the amount of gas reserve would depict a sharp increase upon the inclusion of deposits in the northern area of the Barossa field, which is still undergoing exploration, and others in Caldita field.
According to the President of SK E&S, Choo Hyung-wook, it makes sense that the company has secured Liquified Natural Gas, the material for the production of hydrogen, at most affordable prices and for a long period of time. Hyung-wook also stated that the company will implement robust eco-friendly policy in the whole process for the production of hydrogen for contributing towards the efforts of carbon mitigation, and enhancing the ESG management of the company.
For the record, SK E&S intends to bring home 1.3 million tons of LNG from 2025 for a period of 20 years. The company will produce low-carbon LNG by deploying its storage and carbon capture technology for the minimization of carbon emissions. It also intends to produce ‘CO2 free LNG’ by trapping the CO2 emitted during the process of production, keeping them at offshore field, and drawing out carbon from LNG plants.