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Australia in 84 billion dollar LNG deal with South Korea

The Australian reports that Korean utility Kogas is soon to sign up to purchase around $84 billion of natural gas from offshore Australian developments - Shell’s Prelude floating LNG project and the Inpex / Total owned Ichthys field - Australia in 84 billion dollar LNG deal with South Korea.

AUSTRALIA is set to supply millions of tonnes of liquefied natural gas to South Korea over the next 20 years under an historic deal worth billions of dollars.



South Koreas government last night approved two deals worth $US84 billion sought by the countrys state-run Korea Gas Corporation to import more than five million metric tonnes per year of LNG, the bulk of which will come from Australia.



The deals, the biggest in South Koreas history, are with Royal Dutch Shell Plc and Total SA.

The state-run utility will buy 3.64 million metric tons of LNG a year from Shells Prelude gas project in Australia for 26 years starting 2014, the Ministry of Knowledge Economy said in a statement. It will also buy 2 million tons of the fuel a year from Totals Ichthys field gas projects in Australia and other fields in Nigeria, Norway and Egypt for 18 years starting 2014.



The shipments are valued at $US84 billion and are equivalent to 17 percent of Koreas gas consumption in 2010, according to the statement.