BUSINESS

Kogas agrees to buy more US natural gas

By Shim Woo-hyun
  • Published : Jun 30, 2017 - 15:50
  • Updated : Jun 30, 2017 - 17:25

South Korea‘s state-run gas giant Korea Gas signed a series of agreements with US energy companies to secure more natural gas for the country, as well as to find more partnerships and investment opportunities in the US market.

Korea Gas signed four separate memorandum of understandings with US companies including Exxon Mobil, Energy Transfer, Alaska Gasline Development Corp., Sempra Energy and Woodside Petroleum. “Kogas plans to explore feasibilities of each pact and decide on future investments accordingly,” the company said.

(Yonhap)

Kogas’ latest pact with Sempra Energy and Woodside Petroleum on Thursday, local time, provided the parties with a framework regarding the development of the Port Arthur liquefied natural gas project in Texas, according to Kogas. With the memorandum signed, Korea Gas has become a potential buyer of natural gas from the region and an equity participant in the project. The memorandum also included engineering, construction, operations, maintenance and offtake agreements.

Korea‘s primary liquefied natural gas buyer will also conduct feasibility studies on the Lake Charles LNG project in Louisiana, which is currently owned by Energy Transfer. The company is currently considering taking over the operation and maintenance of the project, but may also consider other investment options, including purchasing shares and procurement, it said.

Meawhile, Kogas also agreed with Exxon Mobil to begin joint research on the US shale gas industry. 

By Shim Woo-hyun (ws@heraldcorp.com)