SK Innovation E&S has begun commercial production at Australia’s Barossa gas field and will receive 1.3 million tons of LNG annually for 20 years through its 37.5% stake. Production began in December last year, while the first cargo was shipped in January and arrived at South Korea’s Boryeong LNG Terminal in February. The project forms part of the company’s approximately 6-million-ton integrated LNG value chain, spanning gas production, liquefaction, shipping, terminals and power generation. SK Innovation E&S says its portfolio approach creates multiple sourcing and sales options, reducing exposure to spot-market prices, shipping costs and supply disruptions. The company invested $1.6 billion in the $4.3 billion Barossa project alongside Santos and JERA, and combines the Australian supply with output from its 49.9% stake in the U.S. Woodford shale gas field. It operates four LNG carriers, domestic power plants with 5 gigawatts of capacity and LNG infrastructure in South Korea, the United States, Australia and China. The company is pursuing additional demand from cogeneration, semiconductor and data-center projects in South Korea, as well as LNG and power opportunities in China and Vietnam.