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SK Innovation E&S brings LNG from Australian gas field to Korea

Published: 24 Feb. 2026, 12:26 Updated: 24 Feb. 2026, 19:14

SK Innovation E&S's LNG carrier arrives at its LNG terminal in Boryeong, South Chungcheong, on Feb. 23. [YONHAP]

SK Innovation E&S, the energy arm of Korea's SK Group, said on Tuesday that it has shipped liquefied natural gas (LNG) to Korea for the first time from an Australian offshore gas field in which it invested 14 years ago.

The company began production last month at the Barossa gas field located about 300 kilometers (186.4 miles) off Australia's northwestern coast.

The initial LNG cargo was transported to the nearby Darwin LNG terminal for liquefaction and shipped to Japan. A subsequent shipment bound for Korea was also liquefied at the Darwin facility, the company said in a press release.

It marks the first time a private Korean company has produced LNG through an overseas resource development project.

Beginning with the initial output, SK Innovation E&S expects to secure 1.3 million metric tons of LNG annually from the Barossa field over the next 20 years. The volume is equivalent to roughly 3 percent of Korea's annual LNG imports, according to 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 said.

SK Innovation E&S acquired a 37.5 percent stake in the Barossa project in 2012. Australian energy producer Santos holds a 50 percent stake, and Japan's largest power generator JERA owns the remaining 12.5 percent.

The three companies have jointly invested about 2 trillion won ($1.6 billion) in the project, covering activities ranging from gas reserve assessments to the construction of production facilities, the company said.

Yonhap