Following the first LNG production in Kitimat, British Columbia, western Canada, in June last year, KOGAS’s equity volume first arrived at the Tongyeong Terminal in Korea in September of the same year. Approximately 700,000 tons of LNG is expected to be imported into Korea by the end of this year.
Above all, the strategic value is significant in that LNG can be brought into Korea through the Pacific shipping route without passing through the Strait of Hormuz. The import distance is also shorter than routes from the Middle East or the US Gulf of Mexico, enabling approximately 20% savings in transportation costs, which is assessed as highly economical.
For this project, KOGAS constructed a dedicated large-diameter pipeline with a total length of 670km crossing the rugged Rocky Mountains to transport natural gas to the western coast of Canada over a period of 5 years.
The LNG Canada project successfully achieved commercial production within the budget approved by the board of directors (97% executed). Through this project, KOGAS has secured approximately 700,000 tons of LNG annually, and annual revenue of approximately 450 billion won is expected.
KOGAS is accelerating the Phase 2 expansion project, using the success of this Phase 1 commercial operation as a springboard. Once the Phase 2 expansion project is completed, the LNG Canada project will have an annual production capacity of 28 million tons.
Source: BusinessKorea