KOGAS to Up Gas Investment in 2012, Focus on Unconventionals

Korea Gas Corp expects to invest $2.5 billion, or 50 per cent more than a year ago, to develop overseas oil and gas projects in 2012.

The company will focus on Australia, Iraq and Canada along with Mozambique, Chief Executive and President Choo Kang-soo told Reuters.

“We are planning to import and trade gas by developing LNG projects that utilize non-traditional gas,” Choo said, referring to shale gas and gas from coal beds, among others.

Choo said that operating experience that the company will get from these LNG projects will be used to plan entry into Chinese and Mongolian areas where non-traditional gas has as much potential as in North America.

He sees South Korea’s gas demand is seen at 34.54 million tonnes of LNG equivalent this year, up 2.8 percent from a year ago, and expects KOGAS to supply a total of 36.91 million tonnes from its inventory and imports under contracts.