Kogas to invest 10 trillion won on clean energyThe state-owned Korea Gas Corporation (Kogas) said on Friday that it would invest 10 trillion won ($8.9 billion) by 2025 to expand its natural gas capacity and build infrastructure for hydrogen vehicles and clean energy sources.
Kogas, the world’s second-largest importer of liquefied natural gas (LNG), unveiled a long-term business plan on the 35th anniversary of its foundation with expectations of playing a larger role in the government’s clean energy policy.
The company plans to buy LNG at cheaper rates in future contracts and make joint efforts with other Asian buyers to expand their bargaining power. The goal is to save 6 trillion won on gas purchases by 2025.
Kogas has been seeking to diversify its gas imports beyond traditional sources in the Middle East and Southeast Asia, which account for about 70 percent of the nation’s total supply. Korea imported about 30 percent of its total supply from Qatar last year, while buying natural gas from Australia, Oman and other countries.
The company plans to spend 6 trillion won on expanding its LNG capacity and combining advanced technologies to improve its energy management system. Another 3 trillion won will go to overseas projects to diversify supply. One trillion won will go to energy transformation projects, such as increasing the number of hydrogen-fueled cars, LNG bunkering and trucks to help tackle air pollution problems.
To boost sales of hydrogen vehicles, Kogas aims to build about 100 hydrogen charging stations and distribution centers by 2022 and create 2 million tons of new natural gas demand by 2025.
The business plan is in line with the Moon Jae-in administration’s plan to shift from coal and nuclear power to clean and renewable energy sources by 2030. Kogas CEO Cheong Seung-il said he expects natural gas to play a “bridging role” under the plan.
Demand for natural gas, a relatively clean source of fuel, is projected to grow at an annual rate of 0.81 percent to 40.49 million metric tons in 2031 from this year’s 36.46 million metric tons, according to the government.