The world’s largest corporate buyer of LNG, state-run Korea Gas Corporation (KOGAS), is deliberating the sale of its 15% stake in the Gladstone liquefied natural gas (GLNG) project in Queensland, Australia. In a filing on Thursday, the company told the stock exchange this possibility. In 2010, after signing a 20-year off-take contract with Santos, Kogas procured 15% equity in the project, estimated to be worth US$ 18.5 billion.
The GLNG project is a joint venture between Petronas, Total, Kogas and premier stake-holder Santos, who own 30%. Although it is thought to be the full 15% that Kogas will withdraw from the GLNG venture, a project that will export up to 7.8 million tpy of LNG as of 2015, the company did not reveal this information. Reports last year suggested that the company had aimed to sell its hold in the project to release capital.
Because of poor overseas investments in oil and gas over the last few years, South Korea has called for a review of its overseas transactions. State-run Korea Oil Corporation (KNOC) has also recently announced the potential sale of overseas assets, including offshoot Harvest Operations, based in Canada. “Non-core parts”, the company said, would be considered for sale.
Edited from various sources by Ted Monroe
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