RasGas Largest Supplier of LNG to South Korea

RasGas Company recently hosted its third annual reception in Seoul, South Korea under the patronage of His Excellency Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry. The event which was attended by RasGas CEO, Hamad Rashid Al-Mohannadi, Oil & Gas, Industry and Energy ministers from neighboring Gulf states, senior officials from Qatar’s Korean customers and business partners was an opportunity for Qatar to recognize and consolidate its long-standing relationship with the Republic of Korea.

Since delivering the first cargo of LNG to South Korea in 1999 under the first long term LNG agreement, RasGas has safely and reliably delivered more than 1,400 shipments, making it the country’s largest single supplier of LNG. The mutual relationship has grown from strength to strength with the signing of two more long-term LNG agreements and significant spot LNG sales along the way.

In his opening remarks at the event, Dr Al-Sada said, “Thanks to the trust and the excellent working relationships established with our Korean buyers and partners we are very proud to be one of the largest suppliers of energy to Korea and to have played a small part in the ‘Miracle on the Han River’.”

“KOGAS is the foundation customer of RasGas and is the largest single buyer of LNG in the world. Qatar is projected to supply over 13 million tons of LNG to South Korea this year sourced primarily from RasGas but also from its sister company Qatargas. Qatar is projected to safely and reliably deliver nearly one third of Korea’s total LNG requirement in 2013,” Al Sada added.

Following Dr Al Sada’s speech, the RasGas CEO said: “We are very privileged to serve the Republic of Korea’s growing energy needs and make significant contribution to the economic cooperation between Korea and Qatar. We look forward to sustaining and strengthening this long-term partnership for years to come.”

Al Mohannadi added, “In January 2011, Hyundai Heavy Industries was awarded a major engineering procurement and construction (EPC) contract for the offshore Barzan Gas Project to supply natural gas, ethane and field condensate to the local market in addition to the export of LPG, plant condensate and sulfur. This project is the largest in the region and is progressing well. We look forward to the successful completion of this mega project, with production expected to be on line in 2014. Our recent completion of the offshore drilling takes the country’s landmark energy project one step closer to completion. Construction of Barzan Gas Project offshore facilities surpassed the 80% completion mark.”

While LNG takes the lion’s share of the energy trade between Korea and Qatar, other products such as crude oil, liquefied petroleum gas (LPG), condensates and helium from Qatar also play an important role in meeting Korea’s overall energy needs.

Similarly, South Korean contractors have found a mutually beneficial relationship working on EPC projects in Qatar, building LNG tankers that serve Qatar’s LNG industry in Korean shipyards and other joint ventures between the two countries.

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LNG World News Staff, September 30, 2013