SK Innovation E&S is set to import ultra-light oil sourced from the Barossa gas field in Australia, marking the first instance of a private company bringing in ultra-light oil from overseas resource development.
On July 27, SK Innovation E&S announced that it plans to bring in 300,000 barrels of ultra-light oil produced at the Barossa gas field through Incheon Port in early August. The ultra-light oil secured by SK Innovation E&S from the Barossa gas field represents 1.1 million barrels of its annual production share of 3 million barrels, with the 300,000 barrels being the first shipment to the domestic market.
In addition to ultra-light oil, SK Innovation E&S is also set to import 1.3 million tons of LNG from the Barossa gas field annually starting this year, contributing to the domestic natural gas supply. This amount accounts for approximately 3% of South Korea's annual LNG imports.
Ultra-light oil, also known as condensate, is a lightweight liquid crude oil produced alongside natural gas. It is lighter than conventional crude oil and evaporates easily, containing significant amounts of naphtha, a key ingredient in the production of plastics and synthetic fibers, which may help stabilize naphtha supply.
The imported ultra-light oil will be processed at SK Incheon Petrochemical's dedicated facilities. The naphtha extracted from this process will be utilized in the production of high-value chemical products such as paraxylene (PX) and petroleum products like gasoline and jet fuel, enhancing the company's overall cost competitiveness.
The Barossa gas field is a large gas field located offshore in northwestern Australia. SK Innovation E&S has been involved in this project since 2012, participating in all stages of development, from resource evaluation to permitting and facility construction. The ownership structure of the gas field includes SK Innovation E&S with 37.5%, Santos of Australia with 50%, and Japan's JERA with 12.5%.
With the Barossa project yielding results after 14 years, SK Innovation E&S will be able to import 1.1 million barrels of ultra-light oil and 1.3 million tons of LNG annually. Considering the 20-year contract period for the Barossa project, the resources secured by SK Innovation E&S will total 22 million barrels of ultra-light oil and 26 million tons of LNG.
An SK Innovation E&S official stated, "The Barossa project is a case where a private company has participated in overseas resource development from a long-term perspective, connecting actual commercial production to domestic import. Utilizing LNG and ultra-light oil produced from the Barossa gas field is significant in reducing external resource dependence and supporting the stability of domestic industry supply."
Meanwhile, on July 14, SK Innovation held a kickoff and boot camp for the final selected teams of its 'AI Impact Solution' project at the SK Serin Building in Jongno-gu, Seoul.
* This article has been translated by AI.
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