Regional LNG: S. Korea looks for new LNG deal

South Korea will this year seek to strike a long-term deal for the supply of about 3 million metric tons a year of liquefied natural gas beginning in 2010, the Ministry of Commerce, Industry and Energy said Monday in a statement asq uoted by agency.

The government is seeking the volume to cover its supply requirements with the ending of various LNG contracts in 2010.

A ministry official said the exact amount of the planned purchase hasn't been decided yet and declined to provide a time frame on when bidding would take place.

The ministry statement comes amid a two-day a meeting beginning Monday between government officials from South Korea Australia on bilateral cooperation in the energy industry, with Australia requesting that South Korea increase its LNG purchases from the country.

South Korea currently imports 500,000 tons of LNG a year from Australia under a contract from 2003 to 2010.

Meanwhile, Korea Gas Corp. has finalized deals with three gas suppliers - Yemen LNG Co., Malaysia LNG Tiga Sdn. Bhd. and Russia's Sakhalin Energy Investment Co. - to purchase a combined total of up to 5.5 million tons of LNG annually for 20 years starting in 2008. The total value of the deals is around $20 billion.(*)