Regional LNG: Kogas may start LNG talks late this year: Report
Thursday, October 23 2003 - 02:07 PM WIB
Oh Kang-hyun, CEO of the state-run company, also told investors 2003 net profit was likely to be slightly lower than last year's 298.3 billion won ($253.2 million), because of weak local prices.
"I'll soon officially ask the government to allow us to seek long-term supply contracts, and if I get 'yes', I will start talking to potential suppliers from late this year or early next year," Oh said.
The talks will be about ways to meet new LNG demand of about three million tonnes.
The company's shares closed down 2.9 percent at 27,000 won before the earnings were announced, roughly in line with a drop of more than three percent in the broad market.
South Korea's LNG demand is expected to grow by 4.3 percent a year in the next several years and a long-term supply contract with Indonesia for an annual supply of 2.3 million tonnes expires in 2007, increasing a need for KOGAS to seek new term contracts, he said.
The firm will look at southeast Asia, Australia, Qatar, Oman and Sakhalin in Russia where new LNG development projects are under discussion or existing projects are being expanded, Oh said.
"Currently, buyers have upper hand in the global LNG market than any other time in the past," Oh said. "We are confident we can make good deals in terms of both prices and supply conditions."
KOGAS imports 19.4 million tonnes of LNG a year under medium- and long-term supply contracts from Indonesia, Malaysia, Australia, Qatar, Brunei and Oman.(*)