[Sponsored Report] Kogas continues to find success overseas

Left: Kogas technology is used at the Manzanillo liquefied natural gas (LNG) Terminal Project in Mexico. Right: The Prelude floating LNG unit in Australia starts commercial operations. [KOREA GAS CORPORATION]

Korea’s state-run Korea Gas Corporation (Kogas) is successfully running 25 energy-related projects, including natural gas extraction and production and liquefied natural gas (LNG) terminal construction, in 13 countries.

Based on world-class LNG purchasing power and market information, Kogas has built a network and infrastructure to purchase natural gas at the optimal time. The state-run company has secured nearly six years’ worth of LNG based on last year’s domestic consumption of 36.22 million tons.

Kogas has successfully created resource development projects in Myanmar and Mozambique.

The company launched the Area 4 Project in Mozambique, the largest project in domestic resource development history. The project includes the Coral South floating liquefied natural gas (FLNG) facility, where Samsung Heavy Industries constructed a floating platform that processes natural gas extracted off the coast of Mozambique.

It also operates the Rovuma LNG facility in Area 4, which is expected to receive a final investment decision by the end of this year.

The Mozambique project is considered the most successful example of large-scale gas field exploration that Kogas has participated in from an early developmental phase. It is expected to greatly contribute to the mutual growth of the domestic shipbuilding industry and Kogas through the construction of LNG transport ships.

Additionally, Kogas has completed its LNG production and shipment facility at Prelude FLNG, the world’s largest FLNG platform constructed in Australia. The FLNG platform was built by Samsung Heavy Industries and will produce 3.6 million tons of LNG annually.

Based on its experience and expertise accumulated in the LNG field for the past 30 years, the company has been actively participating in overseas LNG terminal construction and operations. The export of techniques in operating LNG terminals will improve Kogas’ international status and generate a stable profit.

With a 25-percent stake in the project, Kogas has been exporting its technology in the construction of the Manzanillo LNG Terminal in Mexico. The Manzanillo terminal marks the first time that Kogas has built, operated and part-owned an overseas LNG gas plant.

The company invested 62.3 billion won ($52.9 million) in 2008 and has already retrieved more than 60 percent of that sum in the six years since it began commercial operations.

Kogas achieved a net profit of 42.2 billion won from its overseas business in 2018, due to its success in the Gladstone LNG project in Australia, gas projects in Myanmar and strong efforts in business readjustment, as well as cost reduction.

Kogas will overcome its difficult business environment and global competitiveness through constant adjustment and focus on its core industry, domestic cooperation and the revitalization of its LNG trading business to become a leading global player in the energy industry.

“We will actively participate in natural gas infrastructure projects in global emerging markets by utilizing our world-class technical power and network to become a global LNG provider,” said an official from Kogas.

By Shim Ji-yong [shim.jiyong@joongang.co.kr]