Home BUSINESS South Korea’s SK accused of washing green after LNG U-turn

South Korea’s SK accused of washing green after LNG U-turn

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One of South Korea’s largest conglomerates is facing strong opposition from militant groups after it finalized a large Australian LNG deal a few months after promising to end new overseas oil and gas investments.

The review of SK Group, one of Asia’s largest oil producers, Electric car battery with Computer chip, Activists turned their attention to overseas oil and gas projects, estimated to be worth more than 100 billion U.S. dollars. Successful sport Prevent companies and the state from investing in coal.

The environmental organization claims that SK decided in March to spend US$1.4 billion to develop the offshore Barossa-Caldita gas field, which contradicts the promise made in November Give up on new fossil fuel investmentsThe commitment of SK, South Korea’s third-largest conglomerate, is part of its chairman and largest shareholder Chey Tae-won’s leadership in investing in environmental, social and governance.

“The large amount of greenhouse gases produced by the Barossa-Caldita project will raise serious doubts about the SK Group’s ESG initiative, and more importantly, it will undermine global efforts to mitigate climate change by reducing greenhouse gas emissions,” said a letter to Chey Initiated by dozens of South Korea, Australia and other international environmental protection organizations, including Greenpeace.

SK’s energy department stated that the development project will reduce “almost all” carbon emissions through the use of carbon capture and storage. Fledgling technology Capture carbon dioxide and transport it to reservoirs deep underground, as well as through the purchase of carbon credits.

“Our investment is made under the conditions of developing LNG in an environmentally friendly and low-carbon way,” SK E&S said.

Chey controls more than $200 billion in group assets and has been supervising for many years Realign SK’s investment portfolio, Including divestments from billions of dollars in oil and gas exploration and retail assets.

The Timor Sea project Barossa-Caldita, led by Australian producer Santos, is expected to provide South Korea with LNG for 20 years from 2025. This project has been since 2012.

Activists described the carbon-free liquefied natural gas (a kind of natural gas that has been cooled so that it can be transported on ships) that SK claims as “shocking green drift.”

“The so-called CO2-free LNG… is not only seriously misleading, but also lacks economic or technical feasibility… Any attempt to whitewash the development of fossil fuels with unproven CCS plans that lack technical or economic feasibility Yes,” the letter said.

This dispute arose against the backdrop of increasing pressure on the oil and gas industry Commit to reducing carbon emissions.

International Energy Agency Warning last month In order to control global warming, all new oil and natural gas exploration projects must be stopped this year, and there is an urgent need to increase spending on low-carbon technologies by trillions of dollars.

South Korea was the eighth largest carbon emitter last year, and only 5% of its electricity came from renewable energy.Country is Try to prove How will it fulfill President Moon Jae-in’s commitment to achieve carbon neutrality by 2050?

Many companies and policy makers believe that LNG is an important transition fuel for economies such as South Korea that rely heavily on coal.

However, environmentalists say that in addition to the carbon emitted by final consumption, LNG also releases a large amount of greenhouse gases during the process of extraction, processing, and transportation.

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