Methane, with a global warming potential up to 82 times greater than carbon dioxide over 20 years, is a significant contributor to climate change, particularly from the Oil & Gas (O&G) industry. The International Energy Agency (IEA) estimates that over 75% of these emissions can be reduced with existing technologies.

In 2021, Korean upstream assets, on an equity-basis, emitted approximately 45% of domestic energy methane emissions reported in Korea’s GHG Inventory (2.9 vs 6.5 Mt CO2e)  With global upstream GHG emissions represent roughly 5% of total O&G combustion emissions, this highlights the significant amount of methane emissions that remain unaccounted for in energy value chains involving Korean companies.

Between 2019-2023, Korean assets in 8 countries – Iraq, Kazakhstan, Australia, Uzbekistan, Egypt, and the United Arab Emirates (UAE), the United States, and Canada –  accounted for approximately 92-95% equity-based yearly upstream methane emissions –  Iraq and Kazakhstan were the largest contributors, together representing between 55-70% of estimated total annual emissions.

Public companies like the Korea National Oil Corporation (KNOC) and the Korea Gas Corporation (KOGAS) were major contributors to upstream methane emissions but can lead mitigation efforts. Public companies were responsible for approx. 62% of all equity-based Korean O&G production in 2021, which emitted about 84%, of all equity-based upstream methane emissions. With close ties to the Korean Government, public companies can play an active role in setting the direction of methane mitigation efforts and show their commitment to Korea’s international commitments including the Paris Agreement and Global Methane Pledge.

Methane Emissions from Korean Companies' Oil & Gas Investments - Data visualization

See also: SFOC Insights - COP29 Sees Global Methane Standards Tighten: What’s Next for South Korea’s Public Energy Companies?