KOGAS's LNG Sales Projected to Rise to 15 percent for 2005
- Vows to follow up on innovation strategy

Korea Gas Corporat -ion (KOGAS) said it posted 6,336.2 billion won in sales and 358.2 billion won in operating profits in the first nine months of this year. During the January-Septem ber period, KOGAS imported 15,990,000 tons of liquefied nature gas (LNG) and sold 154.5 million tons of LNG - 87.5 million tons for city gas use and 6.7 million tons for power generation - a 19 percent rise over the same period of last year.
KOGAS registered 238.6 billion won and 176 billion won in accumulated normal profits and net income, respectively.
The corporation said city gas sales rose by 6.1 percent in the nine-month period over a year earlier due to an increase in demand, while sales for power generation surged by 41.3 percent due to a rise in LNG's price competitive edge. Sales during the whole of the year are projected to rise 15 percent to 213 million tons of LNG, thanks to the development of new demand sources and the repair of nuclear power plants and rising electricity demand, the corporation said. Meanwhile, as part of its efforts to push an innovation strategy for 'Global & Clean' KOGAS drew up last September, has decided to go ahead with Internal Innovations ranging from staff members to organization, and corporate culture.
KOGAS held the Innovation Strategy debate at the Samsung Human Center in Yongin, for two days from Oct. 14 where about 184 officers and employees participated. The debate was the first step to help reinforce competitiveness to survive the gas industry, which is undergoing restructuring through internal competitiveness. During the debate, KOGAS will find root problems by discussing in horizontal relationships and draw improvement plans thru brain storming. KOGAS will build up an active and challenging corporate culture, focus on core abilities by eliminating unnecessary practices, and re-establish itself as a customer-loving enterprise by implementing management of transparency, environment, and safety.
KOGAS has also set a buffer to minimize the impact of the rapid oil price hike through improvement of terms of contracts and has pursued long term contracts for stable supply of natural gas. KOGAS made agreements last October with Brunei on introducing the "S-curve System" and has continued to improve terms of contracts with other suppliers. Additionally, because the ARUN III (Indonesia) contract will end on November 2007, a gap in supply of 5mil ton will emerge in 2008. KOGAS has therefore continued to pursue long term supply contracts to ensure a constant stable supply. KOGAS considered several international bids (ITB) from various suppliers; about 11 suppliers from nine countries were sent an ITB last August, and are now under negotiations.
KOGAS is negotiating Heads of Agreement (HOA) with the selected counterparts and plans to choose and finalize contract agreements by next February. nw

NGV Project Aimed at Easing Worsening Air Conditions

- KOGAS lending a helping hand in installing gas stations for NGVs

About 200,000 buses and other vehicles will be replaced with natural gas vehicles (NGVs) by 2007 in an effort to ease air pollution conditions in Seoul and other major cities across the nation.
The project calls for replacing 7,400 buses with NGVs and installing 183 gas stations during 2004 said Chung Jae-hyun, executive vice president in charge of LNG purchase & marketing at Korea Gas Corporation (KOGAS). In accordance with a special law governing the improvement of air conditions in the Seoul Metropolitan area, the government launched the project ahead of the 2002 FIFA World Cup Korea-Japan. It was in October 2001 that the government considered installing LCNG (liquid compressed natural gas)/ LNG (liquid natural gas) stations. KOGAS was commissioned to designate operators of LCNG/ CNG stations.
Currently 5,700 buses and 38 cleaning trucks as well as 59 mother stations and 32 daughter stations are in operation across the nation, said Kim Woong-ki, manager of Transportation Facility Team at KOGASO Office of Natural Gas Transportation Business. Setting an example of the project is Daewon Transportation Co. which operates NGV buses on the route between Seoul and Yangsuri, on the eastern suburbs of Seoul. Taewon Transport run its own gas stations for the operation of NGV buses, said Choi Jong-soo, senior manager of KOGASO Office of Natural Gas Transportation Business.
Around the globe, NGVs in operation were estimated at 1,989,031 as of August, 2002, according to figures released by the Korea Association of Natural Gas Vehicles.
Argentina topped the list with 721,830 NGVs, followed by Italy (380,000), Pakistan (265,000), Brazil (232,973) and the United States (102,430). nw