Australia to Become South Korea?s Biggest LNG Supplier by Mid...

Australia to Become South Korea?s Biggest LNG Supplier by Mid 2010s

Posted on Jul 22nd, 2011

Australia will emerge as one of South Korea?s key strategic energy partners, and is ready to supply more liquefied natural gas (LNG) and other resources to Asia?s fourth-largest economy.

Australia will be one of South Korea?s biggest energy suppliers by the mid 2010s, providing 7.5 million metric tonnes of LNG annually to the Asian country, Australia?s Minister of Resources and Energy Martin Ferguson said.

In meeting arranged by the Australian Chamber of Commerce in Korea, Ferguson said the market share of Australia?s LNG in South Korea will rise further from the current 3 percent in the next five years under newly sealed supply contracts, according to Yonhap news agency on Friday.

South Korea is Australia?s second-largest energy export market and imports some 2 million metric tonnes of LNG from Australia every year.

South Korea has been seeking new LNG suppliers as demand for LNG has been growing since the massive Japanese earthquake that occurred in March.

Last year, Korea Gas Corp. (KOGAS), the world?s biggest buyer of LNG, purchased a 15 percent stake in an Australian LNG venture as part of efforts to secure a stable energy supply.

KOGAS said earlier it will secure 3.5 million tonnes of the fuel from Australia annually under the deal for 20 years, starting in 2015.

The annual imports would meet 11 percent of the nation?s total consumption that year, KOGAS estimated earlier.

The Australian minister said demand for coal from South Korea is also expected to rise in line with economic expansion.

South Korea is Australia?s third-largest total export market, with bilateral trade reaching USD27 billion last year.

The two countries are in talks over a bilateral free trade agreement aiming to tear down tariffs and other barriers to trade.

http://www.lngworldnews.com/australia-to-become-south-koreas-biggest-lng-supplier-by-mid-2010s/