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Kogas delays NWS deal
By Upstream staff
Photo by The Australian
A major liquefied natural gas supply deal between Australia's North West Shelf joint venture and South Korea's Korea Gas (Kogas) has reportedly been delayed.
The deal, which was to have been announced tomorrow following bilateral talks between Australian Prime Minister John Howard and South Korean President Roh Moo-hyun in Canberra today, was put on hold by South Korea, the Australian newspaper reported.
North West Shelf project leader Woodside is expected to announce the deal, which involves an extension of Kogas' existing contract, within days.
A spokesman for the NWS Venture would not comment on why the deal had been delayed but rejected suggestions it was because South Korea was seeking to renegotiate pricing.
Sources in Canberra told the newspaper the delay was related to domestic pressure on the South Korean government.
Trades union in South Korea have been pressing the government to establish longer-term energy supply contracts to increase the security of the country's electricity and heating supplies.
Despite the setback, NWS Venture said it expected South Korea to remain a strong market for Australian gas.
Wednesday, 06 December, 2006, 18:44 GMT | last updated: Thursday, 07 December, 2006, 02:21 GMT
