signed liquefied natural gas supply deals worth KRW 90 trillion ($84 billion) with Shell and Total for gas from their Australian interests, the nation’s Ministry of Knowledge Economy announced.
State-run Korea Gas Corp (Kogas) will import a combined 5.64 million tonnes of LNG per annum, almost one fifth of its total demand, under the deals to be signed next month.
Under the deal with Total, Kogas will take 2 million tonnes of LNG from the Ichthys project, 76% owned and operated by Japanese company Inpex, from 2014 to 2031.
Kogas will also take 1 million tonnes per year of LNG from Shell’s gas fields in Nigeria and Russia from 2013 until Shell’s fully-owned Prelude project, off the coast of Western Australia, starts production between 2015 and 2018.
When it comes into effect, Kogas will take 3.64 million tonnes of gas per year until 2035 under the contract, as well as acquiring 10% of Prelude with an additional investment of $1.5 billion, according to the ministry statement.
South Korean shipbuilder Samsung Heavy Industries is building the land-mark LNG-FPSO for the Prelude project.