Energy Cooperation with China
Lim Jong-kook, head of the Overseas Business Division of the Korea Gas Corporation (KOGAS), met with Lv Gongxun, who is the vice president of PetroChina, president of PetroChina International Exploration & Development Company and president of China National Oil & Gas Exploration & Development Corporation, on November 2 to discuss mutual cooperation in various fields of the gas industry.
The Korea Gas Corporation announced on November 3 that it discussed cooperation with the China National Petroleum Corporation and PetroChina in Beijing on November 2.
The China National Petroleum Corporation, which is running approximately 80% of gas pipelines in China, is a global leading energy company also engaged in the development of shale gas, overseas E&P projects, etc. During the meeting, the companies discussed natural gas trading, joint international projects, information sharing and so on.
Earlier, the Korea Gas Corporation and the China National Petroleum Corporation formed partnerships for LNG development projects in Canada and projects in Mozambique. The recent meeting is expected to lead to more efficient project operations and partnerships in the other countries including China.
The Chinese government recently released a new five-year national energy management plan for the period of 2016 to 2020. According to it, coal-fired power plant construction is prohibited until 2018. The gas industry is likely to benefit from the policy with the Chinese government planning to raise the ratio of natural gas consumption from 5.6% to 10% between 2014 and 2020 instead. Last year, a natural gas trading hub was opened in Shanghai in this context.