KOGAS offers to set up LNG facility for A-1 gas

Vol 9, PW 7 (14 Jul 05) News in Brief

KOGAS of South Korea is offering to set up a natural gas liquefaction facility at Myanmars offshore block A-1.

KOGAS has a 10% stake at A-1, as does GAIL. ONGC Videsh has 20% and South Korean industrial conglomerate Daewoo is operator with 70%.

KOGAS believes it can set up a liquefaction facility and export the LNG to South Korea, a source tells this report. KOGAS believes one LNG train can be set up to liquefy 4-tcf gas over 20 years.

Later this month Daewoo completes drilling of eight exploratory wells at A-1. More exploration and appraisal wells are planned this fiscal.

Once the A-1 consortium receives third party certification of the gas reserves on the block, Myanmar authorities plan to begin approaching potential buyers of the gas in India, Bangladesh and Thailand. Myanmar authorities believe A-1 holds at least 6-tcf.

Block A-1 lies in the Rakhine basin off the Arakans coast.