Kogas CEO hopes for gas contract discussions at LNG13

Korea Gas Corp's chief executive said Friday he hopes to see active discussions on bringing terms and conditions of LNG contracts into line with changes in buyers' demands, during a 4-day gas conference in Seoul that begins Monday.

According to a statement released by Kogas, the state-run gas monopoly's chairman, president and chief executive Kim Myung-kyu said the energy industry is rapidly changing due to deregulation in the global LNG industry and fast improving energy related technologies.

Kim will be one of the keynote speakers at the 13th International Conference & Exhibition on Liquefied Natural Gas or LNG13, next week.

LNG13 is an international conference held every three years, where the world's major LNG buyers, sellers and government officials gather to share their views on issues such as supply, demand, policy, technology and prices.

This year's LNG13 participants include energy ministry officials from Qatar, Oman, Brunei and Australia and senior-ranking executives from Royal Dutch/Shell Group, BP Plc, ExxonMobil, Indonesia's state-run oil and gas company Pertamina and Malaysia's state-run Petronas.

Kim said in a recent interview that Kogas wants to diversity its LNG suppliers, and is seeking shorter LNG sales term contracts, to help it cope with supply disruptions. South Korea is the world's second largest LNG importer after Japan.

ExxonMobil Oil Indonesia Inc, which operates the Arun gas field, suspended operations in March, citing security concern.

Ministry officials from Qatar and Oman are scheduled to meet with South Korea's Minister of Commerce, Industry and Energy Chang Che-shik and Kogas president Kim during the conference week to discuss LNG sales and the government's plans to privatizw Kogas.

Qatar and Oman recently became long-term LNG suppliers to South Korea. Qatar delivered its first shipment of LNG to South Korea in 1999, while Oman delivered its first shipment in 2000.

Qatar is contracted to supply South Korea with 4.8 million tons/year of LNG, and Oman is to supply 4.06 million tons/year.

Indonesia, South Korea's largest LNG term supplier, provides 5.3 million tons/year. Malaysia and Brunei are also term suppliers to South Korea.

The government's plan to provatize Kogas involves splitting its LNG import operations into three separate companies in 2001. One will remain affiliated with Kogas and the other two will be sold by 2002.

The LNG13 conference will be held in Seoull from May 14-17. LNG12 was held in Pert, Australia. (*)