South Korean state-owned Korea Gas Corporation (KOGAS) will invest 10 trillion won (US$8.84 billion) by 2025 to expand its natural gas capacity and infrastructure for hydrogen vehicles and other clean energy sources, reports Yonhap.
Kogas, which has a monopoly on domestic natural gas sales, unveiled a long-term business plan on the 35th anniversary of its foundation as it expects to play a greater role under the government’s energy transformation policy.
The world’s second-largest importer of LNG said it will buy LNG at cheaper prices in future contracts and make joint efforts with other Asian buyers to have greater bargaining power, setting a goal of saving 6 trillion won from gas purchases by 2025.
The report said that the state utility firm will invest 6 trillion won to expand LNG capacity and combine advanced technologies to improve the energy management system and invest 3 trillion won in overseas projects to diversify supplies.
Kogas operates in total 72 LNG storage tanks in South Korea. It imports about 96 percent of Korea’s LNG demand via its four terminals, namely Incheon, Pyeongtaek, Tongyeong and Samcheok.
Kogas' imports of LNG rose 14.8% year on year to 20.14 million mt for the first six months of this year.