SK E&S partners with East Timor gov't on CCS project

South Korea's SK E&S announced on Wednesday that it signed a mutual cooperation partnership (MCP) with the East Timor Ministry of Petroleum and Minerals to collaborate on the development of a carbon capture and storage (CCS) project.

Under the agreement, SK E&S and the East Timor government will work together to transform the Bayu Undan gas field, which is approaching the end of its productive lifespan, into a CCS site.

The East Timor government plans to introduce legislation in 2024 to support the CCS conversion of the Bayu Undan field.

Upon the completion of CCS conversion work following the cessation of gas production, the Bayu Undan field is estimated to have the potential to store up to 10 million tons of carbon dioxide per year.

SK E&S intends to capture CO2 from its Barossa gas field in Australia and from its Boryeong blue hydrogen production facility in South Korea and transport it to the Bayu Undan field for permanent storage.

The East Timor government has designated the conversion of depleted gas fields into CCS storage sites as a top national priority.

By offering CCS storage solutions to countries such as South Korea, which face limitations in their own CCS storage capabilities, East Timor can generate new economic value even after gas production has ceased.

Write to Mi-Sun Kang at misunny@hankyung.com