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, methane emissions from Korean upstream assets, on an equity basis, were equivalent to around 45% of the domestic energy methane emissions reported in Korea’s GHG Inventory (2.9 Mt CO2e vs. 6.5 Mt CO2e). Considering that global upstream GHG emissions represent roughly 5% of total oil and gas combustion emissions, this underscores the significant methane emissions from energy value chains involving Korean companies that are not captured in the GHG Inventory.

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 86%, 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?