Seoul: SK Innovation EandS, the energy division of South Korea's SK Group, announced its plan to import condensate from an Australian offshore gas field, marking the first shipment of its kind to South Korea from this project. The shipment is a result of an investment made 14 years ago.

According to Yonhap News Agency, the company commenced production at the Barossa gas field, situated approximately 300 kilometers off Australia's northwestern coast, in January. The initial shipment consists of 300,000 barrels of condensate, which is set to arrive at the port of Incheon, near Seoul, early next month.

The condensate will be utilized as feedstock at SK Innovation EandS's petrochemical plant in Incheon. This feedstock will be instrumental in producing naphtha, which is essential for creating high-value-added products, including paraxylene and jet fuel. The company is entitled to 1.1 million barrels of condensate annually from the Barossa field, based on its stake in the project.

SK Innovation EandS holds a 37.5 percent stake in the Barossa project, acquired in 2012. Other stakeholders include Australian energy producer Santos, with a 50 percent stake, and Japan's JERA, owning the remaining 12.5 percent. The trio has collectively invested around 2 trillion won (US$1.6 billion) in the project, covering various stages from gas reserve assessments to the construction of production facilities.

In February, SK Innovation EandS shipped liquefied natural gas (LNG) from the Barossa field to South Korea, marking the first instance of a private South Korean company producing LNG through an overseas resource development project. The company anticipates securing 1.3 million metric tons of LNG annually from the Barossa field over the next two decades, a volume that accounts for approximately 3 percent of South Korea's annual LNG imports.