For Strong Grip
on Energy Supply

KOGAS to set up j.v. firm with Oman to deal with LNG businesses

Korea Gas Corp. said that it signed an agreement with Omani Economy Minister Ahmed Macki to set up a joint venture firm to take on various projects in the LNG supply area on May 29 in Seoul.
The joint venture firm with $10 million in capital will engage in various areas of the LNG supply including trading, the construction and operation of LNG storage terminals. KOGAS and the Omani government will split the capital on a 50-50 basis.
KOGAS signed an agreement on energy cooperation with the Omani government in November, 2005 and an MOU on LNG joint business projects in June of last year.
President Lee Soo-ho of KOGAS said the agreement would go a long way to solidify the cooperation between KOGAS and Oman in diversified LNG business areas, most of all in stabilizing the LNG supply for Korea.
KOGAS will sharpen its competitive edge in securing LNG supply in the international LNG market through the agreement and also be able to help Korean LNG-related technologies be exported as KOGAS will employ various LNG technologies in many areas from designing storage facilities to test-running those facilities.
KOGAS was set up by the government in 1983 and it has grown to become the world's largest LNG importer. As Korea's only LNG provider, the company is fully committed to providing clean, safe, and convenient energy to its people. In keeping with this promise, the company now operates three LNG terminals and a nationwide pipeline network spanning 2,520 km ensuring a stable supply for the nation.
KOGAS imports LNG from around the world and supplies it to power plants, gas-utility companies and city gas companies throughout the country. The company produces and supplies natural gas, purifies and sell gas-related by products, builds and operates production facilities an distribution network and explores imports and exports natural gas for domestic and overseas markets.
The state-run corporation won the sovereign credit rating of A3 and A-, the highest rate ever given to a Korean company,
from Moody's and S & P. Building on its accumulated experience and expertise, the company actively develops new technologies, expands its business scopes, and participates in foreign projects so as to realize its goal of becoming a world-class integrated energy company.
The company's major business lines include production and distribution of natural gas including purification and sales of by products, exploration and import/export of natural gas and liquefied natural gas/construction and operation of LNG terminals and natural gas distribution network/research and technical development (R&D) for related business areas.
The company's payroll as of the end of last year had 2,745 employees. Its annual sales last year amounted to 12.894 trillion won with net income of 240 billion won.
President Lee said in his inauguration speech that KOGAS is now a force in the world natural gas industry and taking the lead with high spirits and aspirations.
KOGAS is not only enhancing its efficiency by promoting powerful management innovation, but also bringing its competitive edge one notch higher through establishing its innovative corporate culture.
In addition, he said the company continues to make an aggressive investment in R&D in order to accumulate core technologies for creating high-valued business opportunities.
The company places a high premium on the development of its human resources. The company is equally committed to make its staff well-equipped and highly motivated in order to successfully complete in the world's energy market, he said.
The CEO said the company is moving forward with measured steps to secure its future growth, first, by expanding its business scopes and, secondly, by expanding its international linkages through participation in overseas activities such as development of gas fields as well as new business opportunities like co-generation and technical engineering businesses. nw

President Lee Soo-ho of Korea Gas Corp.

President Lee Soo-ho shakes hands with Omani Economy Minister Ahmed Macki after signing an agreement to set up a joint venture firm to deal with LNG-related business May 29 in Seoul.