TOKYO, March 1 (NNN-KUNA) — The state-run Korea Gas Corp., the world’s largest corporate buyer of liquefied natural gas (LNG), will invest USD 1.1 billion over the next five years to jointly develop LNG fields in Canada with local firm Encana Corp., a deal that will secure gas shipments to South Korea, the Seoul-based media reported.

Under the deal with the biggest natural gas company in North America, Korea Gas acquired a combined 50 percent stake in three gas fields in northeast British Columbia and will start in 2017 extracting a total of 20 million tons of gas over a period of 40 years, according to Yonhap News Agency.
In the meantime, Korea Gas will invest USD 1.1 billion to build gas exploration and production facilities, it said.

South Korea relies heavily on imports for its fuel needs, consuming around 25 million tons of LNG per year.

After the deal, around 3.5 percent of the nation’s total gas use will be produced from South Korea’s own gas extraction activities at home and abroad, the report said.

Encana owns a range of gas fields in Canada and the US and is the largest provider of LNG in the North American region with sales of USD 11.1 billion in 2009. — NNN- KUNA

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