East Sea Gas Field Starts Production, a Dream Come True in 40 Years

“Donghae-1 Gas Field” begins its commercial production of natural gas following the launching ceremony on November 5.

Korea has realized its dream to become an oil-producing country after 40 years of oil development by exploring the domestic continental shelf field since 1964.

The Korea National Oil Corporation (KNOC) said on November 4 that it has completed the construction of production facilities in Donghae-1 Gas Field, located 58 kilometers off Ulsan, that began in March 2002 after 2.5 years of work, and announced that it will start producing natural gas in full swing following test production and the launching ceremony, which will take place on November 5.

The proven reserve in Donghae-1 Gas Field amounts to 250 billion cubic feet, an equivalent of five million tons in LNG.

The KNOC is planning to produce 400,000 tons of LNG per year from Donghae-1 Gas Field from this year to 2018 for Ulsan and South Gyeongsang Province.

Four hundred thousand tons per year is an annual usage of 340,000 households, or 2.2 percent of Korea’s annual LNG consumption.

The natural gas produced from 3,425 meters under the East Sea will be delivered from the land production facilities to the ground terminal through pipelines under the ocean and on land (68 kilometers long) after the first refining process. After the second refining process, the gas will be supplied to households through KNOC’s pipelines.

The KNOC explained, “The Donghae-1 Gas Field can replace the gas import of $1.2 billion and will provide the opportunity to accumulate the technology and experience in oil development, production, and management. It will also contribute to the creation of 43,000 jobs and value-added of two trillion won, nurturing related industries, and technology development.”

The state-run oil corporation, which had been test-producing 300-1,500 tons every day since April, was planning to kick off its commercial production in late July, but delayed the launch in order to enhance safety, mindful of the problems discovered in the gas quality test system.

Chi-Young Shin higgledy@donga.com