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SK Innovation E&S starts full-scale production of LNG from Barossa gas field

Published: 27 Jan. 2026, 14:28 Updated: 27 Jan. 2026, 19:21

SHIN MIN-HEE
[email protected]

The Barossa gas field off the northern coast of Australia [SK INNOVATION E&S]

SK Innovation E&S has completed its first shipment of liquefied natural gas (LNG) from the Barossa gas field off the northern coast of Australia, marking the start of full-scale production, the company said on Tuesday.

This is the first case of a Korean private company participating in an overseas LNG project from the early development phase to production, SK Innovation E&S said, adding that it took 14 years to achieve this milestone.

A view of the Darwin LNG terminal, which houses liquefaction facilities that convert natural gas from the Barossa gas field into liquefied natural gas [SK INNOVATION E&S]

Gas from the Barossa field has now been transported to the Darwin LNG terminal, a key Australian energy facility, and loaded for export.

SK Innovation E&S holds a 37.5 percent stake in the project, alongside Australian energy company Santos' 50 percent and Japanese power generation company JERA's 12.5 percent. The three companies jointly invested $1.6 billion in total for resource assessments, regulatory approvals and the construction of offshore and onshore facilities.

SK Innovation E&S is set to receive 1.3 million tons of LNG annually over the next 20 years, accounting for about 3 percent of Korea’s total annual LNG imports. The company expects the supply to help mitigate volatility in global energy markets and improve energy security.

The project reused the Darwin LNG terminal instead of building a new one, reducing investment costs by building on existing platforms, also known as a “brownfield” approach. Australia’s proximity to Korea, which is about 10 days by ship, also cuts transportation time and costs compared to imports from the Middle East or the United States.

BY SHIN MIN-HEE [[email protected]]