The new CEO of Korea Gas Corp. (KOGAS) has stressed the need to invest in overseas gas development projects to lower the cost of purchasing natural gas overseas.
Chae Hee-bong, who was appointed to lead KOGAS earlier this month, outlined his management strategy in his inaugural address.
He said he would ensure a stable supply of natural gas, make fresh investments in promising overseas gas development projects, launch the hydrogen business, expand investments in the LNG bunkering business, and strengthen cooperation with small and medium-size enterprises.
Chae first stressed a stable supply of natural gas and a need to lower the import costs. KOGAS has set the goal of reducing gas import costs by 6 trillion won by 2025.
The corporation’s long-term import contracts with Qatar and Oman, its two biggest trading partners, expire in 2024. Last year, KOGAS sold about 36 million tons of natural gas.
Chae disclosed his intention to improve the current natural gas import system in which KOGAS purchases gas through contracts in the market. "We have to diversify the means of acquiring natural gas by engaging in gas field development and LNG business," Chae said. "Investments in resource development projects should be carried out based on a more detailed review. We will draw up a resource development strategy, including investment in shale gas," Chae emphasized,
KOGAS is currently participating in 25 projects in 13 countries including Australia. The 25 projects include natural gas exploration, development, production, LNG liquefaction, overseas city gas pipeline and LNG terminal construction and operation. KOGAS is bringing in gas from the overseas oil fields it has successfully developed.
KOGAS is considering making investments in overseas resource development projects. One example is LNG production and shipment in the Prelude project in Australia through a floating liquefied natural gas (FLNG) plant in June. KOGAS secured a 10 percent stake in the project.
KOGAS’ exploration projects in Mozambique and Myanmar are evaluated as successful. In particular, in Mozambique Area 4, the Coral FLNG and Rovuma LNG projects are proceeding smoothly. The project is the largest among Korean companies’ resources development projects. KOGAS is likely to make new investments in the Mozambique project. The company successfully carried out gas exploration in the Myanmar Gas Field (A-1, A-3) with POSCO International.