Korea Rakes it in with LNG

The state-run Korea Gas Corp. (KOGAS) pulled in over 100 billion won in dividends from liquefied natural gas (LNG) projects it invested abroad last year, almost five-fold the cash invested.

According to the gas firm, its received a total of $89.88 million, or some 108 billion won, in dividends from investments in overseas LNG gas field development projects in 2003. $39.8 million from Oman LNG L.L.C. (OLNG) and $50.08 million from RasGas of Qatar.

KOGAS invested $16.7 billion in the consortium headed by RasGas, developing a natural gas well in Ras Laffan, a coastal city in Northern Qatar, and $1.92 million in the group led by OLNG, developing a well in Al-Ghalilah in southeastern Oman.

It has earned over $150 million in dividends from the two projects so far, in which it holds a 5 percent stake each. The LNG production by the consortium led by OLNG began in 2000 and will continue for the next 25 years, while production at the RasGas-led group, which began in 1999, is scheduled to go for 25 years as well. Both projects produce 6.6 million tons of LNG a year each.

In 2002, KOGAS received $28.78 million in dividends from RasGas and $20.2 million from OLNG.

KOGAS forecast to garner over $1 billion in investment dividends over the life of the two projects.

In addition, it plans to participate in a natural gas well development project in Myanmar through a consortium with Daewoo International. KOGAS owns a 10 percent stake in the project. It predicts the gas reserves in the well will reach 80 million-120 million tons.

KOGAS Chairman Oh Kang-hyun said the company will boldly invest overseas as part of the steps to diversify revenue streams.