The South Korean SK has been accused of clearing the green after turning over LNG

One of South Korea’s largest conglomerates is facing a backlash from activist groups following the conclusion of a major liquefied natural gas deal in Australia, after promising to end new foreign oil and gas investments.

Study by the SK Group, one of Asia’s leading oil producers, batteries for electric vehicles and computer chips, when activists focus on foreign oil and gas projects, estimated to be worth more than $ 100 billion successful campaigns to prevent companies and countries from investing in coal.

Environmental groups claimed that SK had decided to spend $ 1.4 billion on the Barossa-Caldita gas station on the coast in March with a commitment made in November. new fossil fuel investments aside. The promise made by SK, Korea’s third-largest conglomerate, to Chey Tae-won, as its chairman and largest shareholder, was part of the focus on environmental, social and governance investments.

“The huge amount of greenhouse gases in the Barossa-Caldita project will raise serious questions about the SK Group’s ESG initiative and, more importantly, weaken global efforts to mitigate climate change by reducing greenhouse gas emissions,” Cheyri said in a letter to South Korea, Australia. and other international environmental groups, including Greenpeace.

SK’s energy unit said the development will reduce “almost all” carbon emissions by trapping and storing carbon, a the latest technology It captures CO2 and expels it into deep underground reservoirs, as well as by purchasing carbon credits.

“Our investment has been made in conditions to develop LNG in an environmentally friendly and low-carbon way,” said SK E&S.

Chey, who controls the group’s assets of more than $ 200 billion, has been overseeing it for years SK portfolio readjustment, including billions of dollars in divestments in oil and gas exploration and retail assets.

Barossa-Caldita, a project led by Australian producer Santos, is expected to deliver LNG to South Korea from 2025 onwards. SK believes Barossa-Caldita should not be considered a new development, warning that it has spent $ 600 million. project since 2012.

Activists say SK’s claims about carbon-free LNG, which is the cooled natural gas that can be transported in containers, are a “tremendous green cleaning”.

“So-called CO2-free LNG. . . in addition to being highly misleading, it also lacks economic or technical viability. . . It is an unacceptable attempt to clean up the development of fossil fuels with verified CCS plans that have no technological or economic viability, ”he said in the letter.

The conflict is exacerbating pressure from the oil and gas sector as a government promises to reduce carbon emissions.

International Energy Agency he warned last month to keep global warming under control, all new oil and gas exploration projects must be stopped this year and there is an urgent need to raise spending on low-carbon technologies by a million dollars.

South Korea was the eighth largest carbon emitter last year and drew 5% of its electricity from renewable sources. It’s the country fighting to show how President Moon Jae-in will achieve his promise to reach carbon neutrality by 2050.

Many companies and politicians believe that LNG is a crucial transition fuel for coal-dependent economies, such as South Korea.

However, environmentalists say that beyond the carbon emitted by final consumption, LNG emits large amounts of greenhouse gases in the processes of extraction, processing and transportation.

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