Korea Calls Shale Gas as 'New Growth Engine'

Korea on Wednesday designated development of shale gas and electricity storage systems as "new growth engines" for the country's economy. The country is preemptively looking to tap overseas shale gas.

The country wants to expand imports of the new fossil fuel to 20 percent of all natural gas imports by 2020, Korea Times reported citing a Ministry of Knowledge Economy statement.

Ministry’s vice minister Cho Seok said that it cannot be said that shale gas is the only answer, but the development of shale gas may cause a balloon effect, causing the price of liquefied natural gas to drop, reducing the money country spends on gas imports.

The government owned energy firms have been active in the US shale gas space.  Korea Gas Corp. (KOGAS) signed an agreement with a U.S. firm in March to annually import 3.5 million tons of natural gas, including shale gas produced from an area near the Sabine Pass River on the border of Texas and Louisiana, for the next 20 years.

Korea National Oil Corp. (KNOC) has also purchased a 23.67 percent stake in an oil field in Texas that produces shale gas, along with more expensive natural gas liquids and condensate.