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Korea Gas Corporation Plans to Profit through Exports of Plant Technology
Plant Technology Export
Korea Gas Corporation Plans to Profit through Exports of Plant Technology
  • By Lee Song-hoon
  • February 3, 2015, 04:02
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KOGAS employees inspect LNG terminal facility in Manzanillo, Mexico.
KOGAS employees inspect LNG terminal facility in Manzanillo, Mexico.

 

The Korea Gas Corporation (KOGAS) is planning to make profits abroad by exporting its technologies of gas pipelines and production facilities that the company has developed for the past 30 years.

On Feb. 1, KOGAS announced that it was reviewing the possibility to construct pipelines across Mozambique in East Africa. This is a project to create a 2,400 km gas pipeline from the Area 4 Gas Field in the northern ocean of Mozambique to its capital, Maputo. The estimated business scale is 4 trillion won (US$3.63 billion). Currently, Mozambique's national oil and gas company ENH is examining the project's feasibility, and once it is completed, they will discuss business participation plans in the first half of this year.

Also, KOGAS has proposed a project to Tanzania, which is north of Mozambique. In September last year, the company made the project proposal of the city gas business model of Mozambique to the Tanzanian government and its affiliated organizations. KOGAS is now waiting for a reply. When the company succeeds in winning the contract, Mozambique and Tanzania will be a crucial foothold in the African market.

KOGAS completed the construction of three Compressed Natural Gas (CNG) stations and a factory in Uzbekistan in December last year. The company is planning to run an additional cutting-edge station in the Nukus region in the latter half of this year, which will be equipped with a device to increase charging capacity by lowering the temperature of compressed natural gas with coolers and a system to manage the point of sale and monitor machine operations. KOGAS is expecting that it will enter the global market through this superior technology.

Moreover, the company is planning to make stable profits by operating its overseas plant project and exports of its technical expertise businesses normally, which are currently underway. The company completed the construction of the LNG Terminals in Manzanillo, Mexico in Aug., 2011 and started the operation in June, 2012. Also, it will be operated for 20 years until Aug., 2031. Until now, the business has turned over 16 billion won (US$14.52 million).

The company is also making profits for exporting its technical expertise, including commissioning, education, technical advice, and supervision of design. KOGAS earned 6.65 billion won (US$6.03 million) for technical advice services for LNG terminals in the United Arab Emirates, and it is turning over 12.7 billion won (US$11.52 million) for the designs of tanks and supervision at the LNG terminals in Jiangsu, China.