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Korea Gas invests in 4th LNG terminal, buys stake in Blue Energy

Seoul (Platts)–29Jun2009

State-run Korea Gas Corp. is to invest Won 738.6 billion ($576.1 million) to expand the storage capacity at its fourth LNG terminal, which is currently under construction at Samcheok, company officials said Monday.

The investment will be made between June 2009 and August 2014, covering the second phase of the construction of the terminal, which is located on the east coast. The project will involve building an additional five storage tanks with a capacity of 200,000 kiloliters each, and other related facilities.

Kogas has spent Won 1.47 trillion since January as part of the first phase of the LNG terminal, building four tanks with a capacity of 200,000 kl each, a port facility capable of receiving LNG carriers with a capacity of up to 270,000 kl, a regasification facility with a capacity of 780 mt per hour, and a 120-kilometer pipeline. The first phase ends in December 2013.

“Plans for building more tanks are not fixed as we have no target year for full completion,” a company official said.

Kogas currently runs three terminals, one in the country’s northwestern port of Incheon with 18 tanks, one in the mid-western port of Pyeongtaek with 12 tanks, and another at the southern port at Tongyeong with 10 tanks. Kogas plans to build an additional six 200,000 kl storage tanks each at Tongyeong and Pyeongtaek by October 2011.

Separately, Kogas said it has used Won 12.84 billion to acquire a 10% stake in Australian coal seam gas explorer Blue Energy. Korea bought 62.85 million shares at A$0.20 ($0.16) each. “The actual acquisition of the stake will come after the Australian government’s approval, slated for July or August,” a company official said.

“The purchase will help ensure opportunities to develop coal seam gas that can be converted into LNG,” the official said.

Charles Lee, newsdesk@platts.com