Russia to Finalize Plan
to Supply 9 Mil. Tons
of Natural Gas to Korea

Kogas CEO talks with Gazprom leaders on the construction of a unified gas supply system in Russia's East

Korea is likely to import 9 million tons of natural gas per annum as part of Russia's plan to create a united gas supply system in the East. Late last year, Russia worked out a tentative plan to create a united gas supply system in the East, specifically calling for supplying 8 million to 9 million tons of natural gas to South Korea and 28.5 million tons to China. The plan will be approved by March. The natural gas Korea will import from Russia will account for about one-third of the nation's annual natural gas consumption of 26 million tons.
Korea Gas Corp. (Kogas) President and CEO Lee Soo-ho met with top managers of Gazprom, the world's largest natural gas supplier, in Moscow on Feb. 11 and discussed ways to develop natural gas deposits in Siberia and import natural gas into Korea. Gazprom is a Russian gas supply monopoly producing 19.4 percent of Russia's gas output, and in particular, the company is responsible for a mammoth project to construct a unified gas supply system in the East in order to explore and develop natural gas deposits in Eastern Siberia and Far Eastern areas.
A Kogas official said if Russia approves the final plan, the company will work out the specifics, including investment and supply routes. Possible options include the shipment of condensed or liquefied gas or the building of an overland gas pipeline through North Korea. Russia wants Korea's participation in several joint projects, including the construction of a pipeline system, according to the Kogas official.
GLOBALIZING KOGAS
In a ceremony held at the headquarters on Dec. 3, 2007, Kogas announced its mid- to long-term vision of globalizing Kogas for its customers and to nurture the growth of the corporation into a globally-competitive energy enterprise.
The philosophy of globalizing Kogas for its customers is to spur its growth by broadening its business scope, pursuing a global standard in personnel, system, and organization culture,
and taking a proactive approach to challenges. It will also create a new value for natural gas users, as well as stakeholders, employees, business partners and society.
For this vision to come to fruition, Kogas set an ambitious mid- to long-term goal of raising its self-sufficiency in gas to 25 percent, improving its productivity to 100 percent, and increasing its overseas profit share to 60 percent. The corporation has also set up three major strategic objectives in the areas of business cooperation, organization and securing a talented workforce.
Since the inauguration of Lee, a former CEO of a private enterprise, Kogas has restructured itself into an organization focused on its task has carried out personnel and management reforms based on the merit system by adopting a substantial team system and streamlining the decision making process. By concentrating its efforts on the overseas resource development business, Kogas has participated in the exploration of Myanmar Block A-1/A-3 and West Kamchatka, and obtained stakes in blocks in East Timor, Indonesia, and Mozambique through its cooperation with ENI, an Italian energy enterprise.
During the ceremony, all executives and employees pledged to do their best to satisfy customers and create a better future by assimilating the four core values: trust, change, challenge and responsibility. nw

Korea Gas Corp. (Kogas) President and CEO
Lee Soo-ho