Mitsubishi Corporation (MC) and Korea Gas Corporation (KOGAS, headquartered in Seongnam City, South Korea) today signed a Memorandum of Understanding (MOU) for strategic collaboration in their natural gas businesses, mainly for liquefied natural gas (LNG) projects under the presence of the CEOs of both companies.
MC and KOGAS have established a long-standing good relationship through LNG projects MC has invested. This has been enhanced through MC’s coordination of LNG swap transactions between KOGAS and Japanese utilities, which have efficiently leveraged the seasonal differences in supply and demand, and through joint participation in the Dongg-Senoro LNG Project which its final investment decision was made last January.
This MOU will further enhance and expand the companies’ relationship by facilitating joint studies on strategic developments of LNG project and unconventional natural gas projects in various areas such as Canada and Australia where both companies are looking into such projects at present. The MOU will also help optimize KOGAS’s procurement of LNG, and give both companies more opportunities to take part in downstream businesses in other countries. In addition, MC and KOGAS have agreed that MC will look into financing to cover both companies’ involvement in these projects. The partners will also exchange trainees to help their people gain knowledge and experience.
In response to growing interest in clean energy and the rise of emerging economies, the demand for natural gas is expected to increase in the future. From a geopolitical perspective, it is important that Korea and Japan work together to secure energy resources within eastern Asia.
Along with a road map in this MOU, MC and KOGAS are committed to strengthening bilateral efforts in energy security. Working with KOGAS, the world’s biggest LNG importer, MC aims to materialize new energy projects that will help secure a stable supply of energy in the future.
<Korea Gas Corporation>
Founded : August, 1983
Headquarters : Seongnam City, South Korea
President & CEO : Kangsoo Choo
Workforce : 2,890 (as of January, 2011)
Sales : 19.4 trillion won (FY 2009)
LNG procurement volume : 31.8 million tones (FY 2010)