Gazprom CEO Alexei Miller and President of South Korean gas corporation Kogas Kim Myung-kyu signed a five-year agreement of cooperation in Moscow yesterday. As a Rosbalt correspondent was informed by the Gazprom press office, it is possible that Gazprom will collaborate with Kogas by supplying Russian natural gas to South Korea. The two companies will also consider possible joint projects in other countries. In addition, the two sides will cooperate in the area of technology and research and look for more opportunities to develop the South Korean gas market. The two companies intend to set up various joint working groups in order to achieve these objectives.
'Today's agreement is the legal foundation for the two companies to collaborate in the supply of gas to South Korea and also to create joint projects in other countries,' Mr Miller announced after the meeting.
The Gazprom press office added that national gas reserves in South Korea are quite limited and there is currently no gas production going on in South Korea itself. On the other hand, South Korea consumed 21.9 billion cubic metres of natural gas in 2002. What is more, specialists believe that gas consumption may rise by 50% by 2010 and by 100% by 2020. The gas transportation system in South Korea is quite developed and it is operated by Kogas. 62% of Kogas shares are owned by the South Korean government.