Kogas signs MOUs for US LNG

The Korea Gas Corporation (Kogas) has signed agreements to potentially participate in at least three liquefied natural gas projects in the US and could end up a buyer of the fuel if the projects go ahead.

Kogas signed three separate memoranda of understandings (MOUs) to help evaluate LNG projects in the US states of Texas, Louisiana and Alaska.

In one release, California-based Sempra Energy and Woodside Petroleum of Australia said they signed an MOU with Kogas regarding the development of the proposed Port Arthur LNG liquefaction project in Port Arthur, Texas.

The MOU provides a framework for co-operation and joint discussion regarding engineering and construction at Port Arthur, as well as operations and maintenance activities, feed gas sourcing and offtake of LNG.

The partners will also discuss Kogas as a potential purchaser of LNG from Port Arthur, as well as an "equity participant" in the project.

"We're pleased to be collaborating with one of the world's largest LNG buyers and importers," said Sempra LNG president Octavio Simoes. "Kogas' expertise and knowledge of the LNG market will complement Sempra's and Woodside's extensive natural gas infrastructure development and combined marketing and operational experience to continue advancing the Port Arthur LNG project."

Sempra and Woodside had previously signed a project development agreement that provides a framework for the sharing of costs of the Port Arthur LNG project related to the development, technical design, permitting and marketing of the proposed liquefaction project.

The project is designed to include two natural gas liquefaction trains, LNG storage tanks, marine berths and ancillary facilities. The MOU does not commit any party to buy or sell LNG or otherwise participate in the Port Arthur LNG project.

In a second statement, Dallas-based Energy Transfer subsidiary Lake Charles LNG Export Company said it had signed an MOU with Kogas to study the feasibility of joint participation in the Lake Charles LNG liquefaction project. Houston-based BG LNG Services, a subsidiary of Shell, is also participating in the study, Energy Transfer said.

The Lake Charles LNG facility in Louisiana would utilise Energy Transfer's existing regasification import facility to accommodate the development of the liquefaction project. The non-binding MOU will allow the parties to study the economics of the project, the engineering, procurement and construction agreement for the project, and the feasibility of sourcing and marketing domestically produced natural gas to export as LNG.

In Alaska, Kogas also signed an MOU with the Alaska Gasline Development Corporation (AGDC) that establishes a framework for the two to co-operate in several areas of Alaska LNG, including project investment, development, operations and other arrangements.

Alaska LNG is an integrated gas pipeline and LNG infrastructure project that will link gas resource on Alaska's North Slope with the growing LNG markets in Asia.

The MOU establishes a joint committee with decision-making authority and sets the framework for Kogas to participate "in all aspects of the development of Alaska LNG", including Korean investment in the project, Kogas co-operation on the engineering, procurement, and construction of the project components, and operations.

"The MOU... lays the groundwork for a significant relationship between the State of Alaska and the Republic of Korea," said AGDC president Keith Meyer. "Kogas is in the market for the development of vast natural gas resource base. Alaska LNG, anchored by the enormous proven natural gas resources of Alaska's North Slope, is well-positioned to satisfy KOGAS' needs for generations."

Kogas is the second-largest corporate LNG buyer in the world.