GS Caltex makes first Korean purchase of carbon-neutral crude oil

GS Caltex CEO Hur Sae-hong

By Lee Kyung-min

GS Caltex has purchased 2 million barrels of carbon-neutral crude oil in a bid to take the lead in fulfilling Environmental, Social and Governance (ESG) criteria here.

The Korean refiner said Thursday that the crude oil was produced at the Johan Sverdrup oil field in Norway by Lundin Energy, the world's first company certified for its carbon-neutral crude oil.

GS Caltex's daily maximum crude oil output amounts to 800,000 barrels. The 2 million barrels of Norwegian carbon-neutral crude oil to be transported to Korea in September represent less than three days' output.

GS Caltex's purchase is significant in that it introduces carbon-neutral crude oil to Korea for the first time among domestic energy companies, the company said.

Lundin became one of the largest oil developers in Europe after discovering the oil field near Norway. Johan Svedrup oil fields, located 140 kilometers west of Stavanger, has a reserve total of 2.7 billion barrels and produces about 500,000 barrels of oil per day.

Lundin announced Wednesday (CET) that all future barrels of oil it sells from the Johan Sverdrup field will be certified as carbon neutrally produced under certification company Intertek's CarbonZero standard.

The field was certified for producing carbon emissions approximately 40 times lower than the world average.

Residual emissions from net production at Johan Sverdrup have been neutralized using high-quality, natural carbon capture projects, certified by the Verified Carbon Standard (VCS).

Starting in 2025, all barrels produced by Lundin will be carbon-neutral in their production.

“We have preemptively introduced carbon-neutral crude oil from Lundin, in line with the company's efforts to bolster its green management activities. We will create a sustainable ecosystem through green leadership,” GS Caltex CEO Hur Sae-hong said.

GS Caltex has replaced all of its low-sulfur fuel oil, a fuel needed for the operation of its Yeosu plant facilities, with liquefied natural gas (LNG).

LNG produces less carbon dioxide emissions than low-sulfur fuel oil, as illustrated by the 76 tons of carbon dioxide emitted by low-sulfur fuel oil per terajoule of energy produced, compared to the 56 tons emitted by natural gas.

The refiner said that it would continue expanding what it called “upcycling,” a company drive to add new value to recycling through recreating product packaging following mixing disposable products.

The green campaign is being led jointly by Korean cosmetics conglomerate Amorepacific, which will package its cosmetics products in containers produced through the recycling of 100 tons of empty plastic bottles annually.