ID :
201783
Wed, 08/17/2011 - 06:37
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Shortlink :
https://oananews.org//node/201783
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Seoul approves 2 natural gas deals with Shell, Total
SEOUL, Aug. 17 (Yonhap) -- South Korea on Wednesday approved two natural gas purchase deals sought by the country's state-run Korea Gas Corp. with the Netherlands-based global energy giant Shell and France's Total.
The deals, once signed and implemented, will supply 5.64 million tons of liquefied natural gas (LNG) each year to South Korea, the Ministry of Knowledge Economy said. The amount accounts for 17 percent of the country's annual LNG consumption.
Under the proposed deal with Shell, the Korea Gas Corp. will annually purchase 1 million tons of liquefied natural gas (LNG) from 2013 and then 3.64 million tons each year for up to 20 years from 2015 when Shell is expected to begin producing LNG from its Prelude mine in Australia.
The deal with Total will supply 2 million tons annually from 2014-2031, according to the ministry. It did not say how much each deal was worth.
"The deals to import 5.64 million tons are the largest in the country's history, and are expected to greatly help stabilize the country's LNG supplies when global concerns about short supplies are flaring following the earthquake in Japan in March," the ministry said in a news release.
The envisioned deals will also replace existing deals with Indonesia, Malaysia and Brunei for 4.7 million tons of annual supplies that are scheduled to expire between 2013-2015, it said.
The deals, once signed and implemented, will supply 5.64 million tons of liquefied natural gas (LNG) each year to South Korea, the Ministry of Knowledge Economy said. The amount accounts for 17 percent of the country's annual LNG consumption.
Under the proposed deal with Shell, the Korea Gas Corp. will annually purchase 1 million tons of liquefied natural gas (LNG) from 2013 and then 3.64 million tons each year for up to 20 years from 2015 when Shell is expected to begin producing LNG from its Prelude mine in Australia.
The deal with Total will supply 2 million tons annually from 2014-2031, according to the ministry. It did not say how much each deal was worth.
"The deals to import 5.64 million tons are the largest in the country's history, and are expected to greatly help stabilize the country's LNG supplies when global concerns about short supplies are flaring following the earthquake in Japan in March," the ministry said in a news release.
The envisioned deals will also replace existing deals with Indonesia, Malaysia and Brunei for 4.7 million tons of annual supplies that are scheduled to expire between 2013-2015, it said.
