SK E&S Strengthens Carbon Storage Cooperation with Chevron... "Leading Global Carbon Reduction"

[Asia Economy Reporter Donghoon Jung] SK E&S has strengthened cooperation with the global energy company Chevron to create a CCS (Carbon Capture and Storage) ecosystem, leading global carbon reduction efforts.

SK E&S announced on the 24th that it signed a "Comprehensive Joint Cooperation Agreement (JCA) on Carbon Reduction" with Chevron, a major U.S. energy company, during the World Gas Conference (WGC2022) held in Daegu.

The signing ceremony was attended by Hyungwook Chu, President of SK E&S; John Kean, President of Chevron Supply & Trading; and Freeman Shahin, President of Chevron Global Gas, who agreed to pursue sincere carbon reduction projects across all energy industry sectors, including the liquefied natural gas (LNG) value chain.

To this end, SK E&S and Chevron will form related teams to share progress on CCS projects and continuously exchange technical and policy-related information to successfully advance CCS projects. Furthermore, both companies will proactively conduct technical and economic feasibility assessments of potential CCS projects to enhance understanding of global CCS projects overall and jointly explore participation opportunities.

The companies stated that this agreement originated from their desire, as energy companies, to seek more realistic methods for achieving carbon neutrality. SK E&S is participating in the world's largest CCS project in the U.S. and is applying CCS to Australian natural gas field development to promote low-carbon LNG production. Meanwhile, Chevron has announced plans to develop a CCS hub with an annual capacity of 25 million tons to accelerate low-carbon business.

Hyungwook Chu, President of SK E&S, said, "It is well known that CCS is necessary for carbon neutrality, but since it requires enormous costs, major energy companies need to take responsible roles. Through this agreement with Chevron, who shares the same serious concerns, we will make continuous and steady efforts to reduce carbon."

John Kean, President of Chevron Supply & Trading, stated, "Carbon capture and storage is very important to achieve the net-zero goals of the Paris Agreement, and Chevron is striving to discover CCS opportunities worldwide. We look forward to finding potential opportunities through cooperation between Chevron and SK E&S."