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Tuesday, 02 December, 2008, 23:50 GMT | more >>

Kogas set to pump $1.42bn into LNG



By Upstream staff 

South Korea’s Korea Gas Corporation (Kogas) said today that it will invest 1.47 trillion won ($1.42 billion) to set up additional liquefied natural gas storage tanks to secure steady supply amid rising domestic gas demand.

The investment, to be made from January 2009 to December 2013 in Samchok on the east coast of the Korean peninsula, will include building LNG storage tanks and port facilities for LNG vessels, Kogas said.

But details on storage capacities were not immediately known.

Last September Kogas said it planned to set up an additional 1.26 million tonnes of LNG storage, or 14 tanks with 90,000 tonnes capacity each by December of 2013, but said location had not at that time been decided.

Kogas, the world's largest commercial buyer of LNG, has total storage capacity of 2.43 million tonnes. But out of the 2.43 million, four 90,000-tonne storage tanks in Incheon, west of the capital Seoul, are under repair until later this year, after leaks were found in September 2006.

Out of the four problematic tanks, two will be repaired by August, while the remaining two will be fixed by October.

South Korea, the world's second-biggest user of LNG and normally the biggest buyer of spot cargoes during the winter, uses about 70% of its natural gas each year during the cold season, reported Reuters.


Thursday, 03 July, 2008, 03:10 GMT  | last updated: Thursday, 03 July, 2008, 06:57 GMT

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