Regional LNG: Kogas, Vopak to jointly develop LNG terminals

Dutch-based international tank terminal operator Royal Vopak and South Korean gas distributor Korean Gas Corporation (Kogas) had signed signed an agreement with the intention of collaborating on the development of one or more receiving terminals for liquefied natural gas (LNG) in some countries in Asia, Vopak said in a statement released Tuesday

"Still to be studied is the form such an independent receiving terminal should take, where in Asia it should be located and which parties in the market would use the terminal for supplying and/or purchasing gas," Vopak said.

Vopak said the pace of energy demand growth in Asia has prompted a number of studies in the region to evaluate the import of liquified natural gas. A guaranteed throughput for the long term is one of the main conditions for a potential investment. The currently valid standards for safety and the environment will be met.

Vopak's main business is in the area of the development, construction and management of terminals for the storage and handling of chemical and oil products. Vopak has a presence in 29 countries with 72 terminals and has a large number of customers who are also engaged in LNG activities.

Kogas is the owner and operator of three world scale LNG receiving terminals in Korea as well as the nationwide gas pipeline network stretching 2,451 kilometres. During 2004 a total 22 million tons of LNG were handled, which involved 371 ship discharges.

"This cooperation with Vopak fits well within Kogas? strategy to expand its LNG terminal business overseas," said Kogas. (alex)