lng still in demand

http://econews.com.au/news-to-sustain-our-world/south-korea-to-sign-billion-dollar-lng-supply-deal/

South Korea to sign billion-dollar LNG supply deal

South Korea is set to buy a massive slice of its liquefied natural gas (LNG) needs, almost 20 per cent in fact, from Australia, in a deal that�s expected to be signed with energy giant Shell.

Shell is reported to be on the verge of signing the multi billion-dollar LNG deal with the Korean state gas company.

State-owned Korea Gas Corporation (Kogas) has announced it will buy 3.64 million tonnes of LNG annually from Australia for 20 years starting 2017.

That�s when Shell is scheduled to begin producing gas from its Prelude project, labelled the world�s first floating LNG facility, to be based off the coast of Western Australia.

The deal is expected to be signed in September, the same time that Kogas is due to formalise an agreement with French company Total to buy two million tonnes of LNG annually between 2014 and 2031.

Together the two deals are believed to be worth about $80 billion and will eventually provide more than 17 per cent of South Korea�s total LNG needs.

Kogas is the world�s second biggest buyer of LNG.