S.Korea govt backs U.S. shale gas imports, investment

WS-SK Target

23/12/2016 01:29

SEOUL, Dec 23 (Reuters) - South Korea stepped up a push on 
Friday to encourage its oil and gas companies to invest in U.S. 
shale gas projects, amid expectations that more opportunities 
will arise under a Trump administration. 
    Asia's fourth-largest economy is the world's second-largest 
buyer of liquefied natural gas (LNG) after Japan, importing 
about 30 million tonnes a year through state-run Korea Gas Corp 
(KOGAS)  036460.KS . 
    In a meeting with the heads of Korean gas companies, energy 
minister Joo Hyung-hwan stressed the need to strengthen 
bilateral cooperation in the gas sector, with the first Korean 
imports of U.S. shale gas due to start next year, according to 
the ministry statement.  
    "As the upcoming Trump administration also has great 
interest in exporting fossil fuel energy sources including shale 
gas, we, the government, are planning to strongly support our 
companies' cooperation in the shale gas sector," Joo said in the 
meeting.  
    U.S. President-elect Donald Trump had pledged to roll back 
some of America's environmental policies and to revive the 
ailing U.S. fossil fuel industry.  urn:newsml:reuters.com:*:nL2N18N1DG 
    KOGAS is set to import 2.8 million tonnes a year of 
liquefied natural gas (LNG) processed by U.S. Cheniere Energy 
 LNG.A ,starting in 2017. The two companies signed a 20-year 
shale gas supply deal in 2012.  
    Private gas company, SK E&S  SKENS.UL , the LNG business 
unit of SK Group, is also set to import 2.2 million tonnes a 
year of U.S.-origin LNG from 2019 through 2039. 
    The meeting followed a call by the energy ministry last 
month for Korean oil and gas companies to look for more 
opportunities to invest in U.S. exploration projects. 
 urn:newsml:reuters.com:*:nL4N1DH2ZI 
          
 
 (Reporting By Jane Chung; Editing by Richard Pullin) 
 ((jane.chung@thomsonreuters.com; +82 2 3704 5667; Reuters 
Messaging: jane.chung.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA GAS/USA