KOGAS to Supply Natural Gas in Southern Mexico

On August 9, the Korea Gas Corporation signed an MOU with the state government of Yucatan in Mexico. The purpose of the MOU is to build an LNG terminal at the Port of Progreso located in Merida, the capital of Yucatan, and lay gas pipes for natural gas supply to and from Merida, Cancun, etc.

The corporation is going to decide on the initiation of the project after conducting a feasibility study. This project, once initiated, is expected to make a profitable LNG business model covering all the way from the introduction of LNG to sale to power stations, companies, hotels and the like as end consumers.

In addition, the Korea Gas Corporation is planning to sign similar MOUs with many other state governments in Mexico as local demands for natural gas supply are on the increase in the regions including Quintana Roo and Campeche.

In the meantime, the corporation concluded an MOU with the Korea Development Bank, the National Agricultural Cooperative Federation and the Korea Export Insurance Corporation on July 26 so that its midstream and downstream projects abroad can go well based on the Co-Investment Fund to be raised. The project in Yucatan is expected to cost US$1 billion to US$1.5 billion and bring opportunities to South Korean EPC companies, equipment suppliers and city gas suppliers.