The firm has been reluctant to enter into long-term deals because of the uncertainty in South Korea’s gas sector which is currently in a state of flux.
In an interview with Platts an anonymous Kogas official said, “We are not yet sure about the duration of this contract. Our team is currently working on that but it will be a long-term contract.”
“Kogas [[has] found a way to secure LNG imports despite the uncertainty over the country’s gas sector deregulation. Any potential supplier will have to agree to accommodate any changes in the importing entity if restructuring goes ahead.
Whichever restructuring route the government decides on, the supplier will be guaranteed continuity of the contract,” added the official, alluding to a gas sector restructuring plan which has been in limbo since the end of 2001 ever since a fall out between the Korean government and Kogas’s labour union.
