Korea Gas Corporation (KOGAS) signed a memorandum of understanding (MOU) with China National Petroleum Corporation (CNPC) in Beijing on December 15 for cooperation in natural gas business.
CNPC, which ranked fourth in the Fortune Global 500 this year, is one of the largest petroleum and natural gas developers in the world and its scope of business includes oil refining, petrochemical development, natural gas piping construction and engineering. At present, KOGAS and CNPC are working together in Mozambique for resources development and LNG liquefaction and in Canada for LNG liquefaction.
According to the MOU, their cooperation in the future covers trading for stable natural gas supply, LNG storage tank construction, LNG terminal trial run, etc. They are going to work with each other to deal with the so-called Asian premium and foster the development of the Northeast Asian natural gas market, too.
Earlier, on December 13 and 14, KOGAS discussed joint overseas resources development with Sinopec Group and Beijing Gas and cooperation in the field of LNG trading with China National Offshore Oil Company (CNOOC). In addition, KOGAS discussed its cooperation with Chinese energy companies for stable gas supply in winter with regard to the Chinese government’s Coal to Gas Switching policy.