Hyundai E&C to commercialize CCS for the first time in S.Korea

South Korea's Hyundai Engineering & Construction announced that it has won the contract for the preliminary front-end engineering and design (Pre-FEED) of the Korea National Oil Corporation (KNOC)'s Carbon Capture and Storage (CCS) Demonstration Project based on the Donghae Gas Field, which will be the largest-scale CCS storage tank in the country.

The Donghae Gas Field-based CCS Demo Project is one aimed at capturing and storing 1.2 million tons of carbon dioxide annually from the depleted East Sea gas field. Its objectives include achieving domestic greenhouse gas reduction targets and commercializing CCS technology.

This project is significant as it is the first attempt in the country to commercialize CCS. The project is scheduled to be carried out from 2025 to 2030.

Hyundai E&C will perform the Pre-FEED for six months, which includes the preparation of a facility construction plan in the feasibility study and the successful initiation of the demo project.

The Donghae Gas Field is located 58 km southeast of Ulsan and was first discovered in 1998, with production beginning in 2004. It is the only oil production source in the country, with gas production officially ending on December 31, 2021.

The depleted reservoir has accumulated data from exploration, development and production processes, and it provides sufficient storage capacity, making it suitable for use as a carbon dioxide storage site.

Hyundai E&C will conduct the Pre-FEED for both onshore and offshore areas, including the existing facilities such as offshore platforms and subsea injection facilities used during natural gas production, as well as hub terminals and pipelines required for carbon dioxide transportation and storage. Through this process, the company plans to establish the necessary requirements for the CCS project.

Write to Eun-Ji Shim at summit@hankyung.com