South Korea to step up imports of US shale gas

SEOUL (Reuters) - South Korea stepped up a boost on Friday to encourage its oil and gas companies to invest in shale gas projects in the US amid expectations that more opportunities will emerge under the Trump administration.

Asia's fourth-largest economy is the world's second largest buyer of liquefied natural gas (LNG) after Japan, importing about 30 million tonnes a year through state-owned Korea Gas Corp (KOGAS).

In a meeting with the heads of Korea's gas companies, Energy Minister Joo Hyung-hwan emphasized the need to strengthen bilateral cooperation in the gas sector with the first Korean imports of US shale gas scheduled to begin in the next year.

"As the future Trump administration also has a strong interest in exporting fossil fuel energy sources, including shale gas, we, the government, are planning to strongly support the cooperation of our companies in the shale gas sector," said Joo at the meeting .

KOGAS will import 2.8 million tonnes / year of liquefied natural gas (LNG) processed by U. Cheniere Energy from 2017 onwards. The two companies have signed a 20-year supply of shale gas in 2012.

Private SK E & S gas company is also prepared to import 2.2 million tonnes per year of US LNG from 2019 to 2039.

(By Jane Chung)