South Korea’s KOGAS Needs Total 36 mln tonnes LNG in 2012

Korea Gas Corp (KOGAS), South Korea's state-run gas company, announced on Monday it would be importing in 2012 a total of 36.46 million tonnes of liquefied natural gas (LNG), or 1.6 trillion cubic feet of natural gas, presumably to ensure a steady and constant supply of the commodity for domestic purposes.

The amount, however, is a little lower compared to the 36.72 million tonnes imported in 2011, Reuters News reported, citing customs data.

The report did not mention from where KOGAS will specifically buy and import the LNG. But the South Korean gas company said it expects to rake in profits of $187.75 million for 2012 once it sells the LNG to domestic buyers.

Last week, KOGAS entered into a 20-year sale agreementwith Ras Laffan Liquefied Natural Gas Co. (Rasgas) of Qatar. Under the deal, KOGAS will be supplied an additional 2 million tonnes a year of the chilled natural gas over the next two decades by Rasgas, one of two Qatari producers of the fuel. Deliveries are expected to start in 2013.

LNG is natural gas mainly composed of methane that has been temporarily converted to liquid form for ease of storage or transport. It is odourless, colourless, non-toxic and non-corrosive.

KOGAS and RasGas entered its very first long-term agreement in 1995, with the Qatari LNG supplier providing 4.9 million tonnes a year. In 2007, the two countries entered into a second agreement that hiked import supply volumes by 2.1 million tonnes a year. The third arrangement will see import supply volumes to 9 million tonnes annually.

LNG is a safe, environmentally friendly fuel. When exposed to the environment, LNG rapidly evaporates, leaving no residue on water or soil. If spilled, LNG would not result in a slick because it evaporates quickly and disperses.

Once LNG is converted to natural gas, it produces relatively low emissions when burned to heat homes, generate electricity and fuel vehicles.