Ensuring a reliable and sustainable energy supply through pioneering low-carbon projects

In an exclusive interview with Energy Connects ahead of ADIPEC 2024, Dong Sub Kim, Chairman and CEO of Korea National Oil Corporation (KNOC), emphasised the company’s dedication to securing oil reserves, advancing low-carbon solutions, and developing clean energy infrastructure through key initiatives like the Gwanggaeto exploration project, a large-scale carbon capture and storage (CCS) initiative, and an offshore floating wind farm.

Can you tell us more about Korea National Oil Corporation and its recent projects?

As a state-run company, Korea National Oil Corporation (KNOC) was founded in 1979 for the reliable supply of oil. Since its establishment, KNOC has been participating in domestic as well as overseas E&P projects (32 projects in 16 countries) to secure oil reserves for national energy security reasons. Also, KNOC has strategic oil stockpiles equivalent to 130 days of domestic consumption, ready to be released in case of emergency. In total, it has stockpiling facilities capable of storing 146 million barrels of oil equivalent.

Korea relies entirely on oil imports for its primary energy consumption and so it is critical for KNOC to mitigate potential risks rising from supply disruptions by adding more reserves to the pipeline. In line with this, it has launched the Gwanggaeto project which is a plan for exploration activities in the domestic continental shelf over a period of 10 years.

The project includes exploring the deep sea area and is expected to create a new energy resource map for Korea if proven to be successful. By acquiring additional geological data recently, KNOC has identified a couple of prospective areas for the deep waters of the East Sea and are to be drilled starting from the end of this year.

How is KNOC preparing for a lower-carbon future?

The world is evolving towards net zero and accelerating towards energy transition, and KNOC also needs to find solutions for cutting down CO2 emissions.

We anticipate that it will take a certain amount of time for the low-carbon solutions to replace fossil fuels entirely. So smooth and gradual energy transition for companies like KNOC will be a key to a lower-carbon future. The gradual variation in business portfolio linked to invesment decisions that are aligned with long-term perspectives will also be essential.

As a responsible member of the international community, South Korea aims to make its best efforts to achieve carbon neutrality and, as a state-owned company, KNOC is obliged to endorse the policy to pursue low-carbon solutions projects while carrying on with exploration activities.

In fact, KNOC is the only company in Korea which has the skills and site at hand to store CO2 underground. It is working on a project which is Korea’s first large-scale carbon capture and storage (CCS) demonstration project. The initiative involves injecting 1.2 million tonnes of CO2 into Donghae gas field that stopped production in late 2021. By doing so, KNOC will contribute to Korea’s Nationally Determined Contribution (NDC) to reduce 4.8 million tonnes of CO2 by 2030. KNOC has already completed the storage capacity evaluation and safety (risk) analysis for the project. After the facilities get constructed in 2027, the first CO2 injection is scheduled in 2028.

Moving onto our ammonia project, KNOC is developing an infrastructure capable of receiving, storing, and distributing low-carbon ammonia from overseas at coal-fired power plants near the East Sea, West Sea, and South Sea of South Korea. The goal is to provide affordable clean hydrogen and ammonia in our homeland and start supplying fuel from 2027-2028 in accordance with the government’s clean hydrogen-based power generation plan.

Taking the opportunity of the geological advantage of Ulsan, where KNOC’s head office is located, KNOC is also involved in developing an offshore floating windfarm with a capacity of 200MW. This is expected to be starting power generation in 2028.

What do you expect to see from ADIPEC this year?

ADIPEC takes a leading role in energy industries every year. It brings people together to share experiences and insights in the comprehensive platform. It derives actionable solutions to reduce CO2 in the midst of geopolitical and economic challenges while we maintain energy security and affordability.

Matching and connecting the dots and bringing clever minds of the energy industry together to synergise the limited resources for the optimal outcome will continue to be ADIPEC’s main role. Given the fact that this year’s most notable issue has to do with geopolitical risks in the Middle East, I am thrilled to witness how ADIPEC manages to conclude yet another challenging year, inspiring leaders and creative minds.

Can you tell us more about Korea National Oil Corporation and its recent projects?

As a state-run company, Korea National Oil Corporation (KNOC) was founded in 1979 for the reliable supply of oil. Since its establishment, KNOC has been participating in domestic as well as overseas E&P projects (32 projects in 16 countries) to secure oil reserves for national energy security reasons. Also, KNOC has strategic oil stockpiles equivalent to 130 days of domestic consumption, ready to be released in case of emergency. In total, it has stockpiling facilities capable of storing 146 million barrels of oil equivalent.

Korea relies entirely on oil imports for its primary energy consumption and so it is critical for KNOC to mitigate potential risks rising from supply disruptions by adding more reserves to the pipeline. In line with this, it has launched the Gwanggaeto project which is a plan for exploration activities in the domestic continental shelf over a period of 10 years.

The project includes exploring the deep sea area and is expected to create a new energy resource map for Korea if proven to be successful. By acquiring additional geological data recently, KNOC has identified a couple of prospective areas for the deep waters of the East Sea and are to be drilled starting from the end of this year.

How is KNOC preparing for a lower-carbon future?

The world is evolving towards net zero and accelerating towards energy transition, and KNOC also needs to find solutions for cutting down CO2 emissions.

We anticipate that it will take a certain amount of time for the low-carbon solutions to replace fossil fuels entirely. So smooth and gradual energy transition for companies like KNOC will be a key to a lower-carbon future. The gradual variation in business portfolio linked to inves-ment decisions that are aligned with long-term perspectives will also be essential.

As a responsible member of the international community, South Korea aims to make its best efforts to achieve carbon neutrality and, as a state-owned company, KNOC is obliged to endorse the policy to pursue low-carbon solutions projects while carrying on with exploration activities.

In fact, KNOC is the only company in Korea which has the skills and site at hand to store CO2 underground. It is working on a project which is Korea’s first large-scale carbon capture and storage (CCS) demonstration project. The initiative involves injecting 1.2 million tonnes of CO2 into Donghae gas field that stopped production in late 2021. By doing so, KNOC will contribute to Korea’s Nationally Determined Contribution (NDC) to reduce 4.8 million tonnes of CO2 by 2030. KNOC has already completed the storage capacity evaluation and safety (risk) analysis for the project. After the facilities get constructed in 2027, the first CO2 injection is scheduled in 2028.

Moving onto our ammonia project, KNOC is developing an infrastructure capable of receiving, storing, and distributing low-carbon ammonia from overseas at coal-fired power plants near the East Sea, West Sea, and South Sea of South Korea. The goal is to provide affordable clean hydrogen and ammonia in our homeland and start supplying fuel from 2027-2028 in accordance with the government’s clean hydrogen-based power generation plan.

Taking the opportunity of the geological advantage of Ulsan, where KNOC’s head office is located, KNOC is also involved in developing an offshore floating windfarm with a capacity of 200MW. This is expected to be starting power generation in 2028.

What do you expect to see from ADIPEC this year?

ADIPEC takes a leading role in energy industries every year. It brings people together to share experiences and insights in the comprehensive platform. It derives actionable solutions to reduce CO2 in the midst of geopolitical and economic challenges while we maintain energy security and affordability.

Matching and connecting the dots and bringing clever minds of the energy industry together to synergise the limited resources for the optimal outcome will continue to be ADIPEC’s main role. Given the fact that this year’s most notable issue has to do with geopolitical risks in the Middle East, I am thrilled to witness how ADIPEC manages to conclude yet another challenging year, inspiring leaders and creative minds.