Korea Agrees to Import Additional
2 Mil. Tons of LNG from Oman

KOGAS signs an MOU to establish a joint venture with sultanate

Korea has agreed to import an additional 2 million tons of liquefied natural gas (LNG) yearly from Oman. Korea Gas Corporation (KOGAS) also reached an agreement to establish a joint venture with Oman within this year.
According to the Ministry of Commerce, Industry and Energy (MOCIE), the agreement came after MOCIE Minister Kim Young-joo, made a tour of Oman in his capacity of a presidential envoy on Oct. 28 and 29 and had successive meetings with the Omani national economy, petroleum and trade ministers.
During their talks, Korea and Oman agreed upon a long-term contract in which Korea will import an additional 2 million tons of LNG yearly and Oman will offer preferential treatment in supplying as much spot trading volumes as possible in order to stabilize demand during the winter season.
Currently, Oman supplies 4.06 million tons of LNG yearly since 2000.
KOGAS agreed with the Omani Petroleum Ministry to jointly construct and operate an LNG liquefaction plant in Oman as well as explore new gas fields.
The two sides also agreed to set up a joint venture specializing in the construction of LNG stockpile facilities in Oman or a third country and LNG trading this coming December. KOGAS President Lee Soo-ho and Omani Petroleum Minister Mohammed bin Hamad Al-Rumhy signed a Memorandum of Understanding to that effect in the presence of MOCIE Minister Kim.
In addition, Kim and Al-Rumhy agreed to hold the Korean-Omani Energy Cooperation Committee Meeting as soon as possible to deal with ways of promoting cooperation in the energy field, including the joint projects agreed upon between Oman and KOGAS.
The Omani side asked for Korean companies to aggressively participate in such ambitious projects as petrochemical and power-desalination projects the Omani government has been pushing as part of its 7th economic development plan.
Kim requested that Korean companies be allowed to participate in such projects as the Dugum coal-fired power plant construction project, refinery/petrochemical complex construction projects and power/desalination construction projects.
In response, the Omani trade minister promised to provide maximum support to Korean companies, saying that firms such as Doosan Heavy Industries, GS E&C, LG International Corp. and DSME have so far successfully carried out projects by capitalizing on their excellent expertise.
Since 2004, Korea has been offering to Oman the "Knowledge Sharing Program" designed to share and transfer Korea's economic development experience and know-how. In particular, Korea will conduct comprehensive consulting and personnel exchange projects in such areas as IT, high-tech manufacturing and SME development; sectors in which Oman is keenly interested.
Under the Knowledge Sharing Program, organized by the Economic Cooperation Center of the Korea Development Institute (KDI), policy consultants, experts and officials have been dispatched to provide consulting services for the establishment of the Vietnam Bank, a free economic zone in Uzbekistan and a roadmap for developing the Indian bond market. Meanwhile, the Korean side requested for the Omani government's cooperation in easing permit and license restrictions and manization, or the mandatory recruiting of Omanis.
Ahn Chul-shik, director general of the Headquarters for the Energy Industry at MOCIE, who accompanied Kim, said the major achievements of the visit to Oman were securing additional LNG imports for Korea and a request for Oman's support for Yeosu's bid to host the 2012 Expo.
Ahn said Korea has become Oman's largest gas customer since the nation participated in Oman's first gas field exploration project in 1996. The agreement is significant since Korea will be allowed to participate in additional gas field exploration projects and gas liquefaction projects in order to secure a stable LNG supply and raise its own crude and gas development ratio. nw

Minister of Commerce, Industry and Energy Kim Young-ju meets with Omani Petroleum Minister Mohammed bin Hamad Al-Rumhy during a tour of Oman as a presidential envoy between Oct. 28 and Oct. 29. MOCIE Minister Kim tours an Omani aromatic plant. being built by SK E&C.