Seoul: SK Innovation E and S, the energy arm of South Korea's SK Group, has announced the commencement of production at an offshore gas field in Australia, marking a significant achievement for the company 14 years after its initial investment.

According to Yonhap News Agency, the first batch of liquefied natural gas (LNG) from the Barossa gas field, situated approximately 300 kilometers off Australia's northwestern coast, has been successfully transported to the Darwin LNG terminal and subsequently shipped to Japan. This development signifies the first instance of a South Korean private-sector company achieving LNG production through an overseas resource development venture.

SK Innovation E and S anticipates securing 1.3 million tons of LNG annually from the Barossa field for the next two decades. This volume represents about 3 percent of South Korea's annual LNG imports. A company representative noted that the projected LNG output will support both the company and South Korea in managing uncertainties in the global energy market, which is susceptible to geopolitical tensions and international disputes.

The South Korean company acquired a 37.5 percent stake in the Barossa gas field in 2012. Australian oil and gas producer Santos and Japan's largest power generation company JERA hold 50 percent and 12.5 percent stakes, respectively. The trio has collectively invested approximately 2 trillion won (US$1.6 billion) in the project, covering a range of activities from gas reserve assessments to the construction of production facilities.