Regional LNG: S. Korea's Kogas to build new LNG storage

Korea Gas Corp., the world's largest buyer of liquefied natural gas (LNG), said on Thursday it would spend some US$372 million) over the next five years to build two new LNG storage tanks, reuters reported.

KOGAS will build the 200,000-kilolitre storage tanks between June this year and July 2010 in an effort to meet rising demand, the company said in a filing to the local stock exchange.

Natural gas demand in South Korea, which imports almost all of its natural gas needs, is forecast to grow 3.8 percent to 22.7 million tonnes this year, according to state-funded think-tank Korea Energy Economics Institute (KEEI).

The new storage facilities, to be built in the southern city of Tongyong, would be equivalent to about 10 percent of KOGAS's current capacity of 4.18 million kilolitres. (*)