Sydney Morning Herald: Korea Gas Mulls Interest in Woodside's Browse fFoating LNG Venture

Korea Gas Corp, the world's biggest importer of liquefied natural gas, has voiced tentative interest in participating in Woodside Petroleum's Browse floating project, defying market doubts that the West Australian venture will be able to attract customers.

Joe Kang, director of Kogas's energy resources research division, said "depending on the market", the company could be interested in buying LNG from the proposed project. Taking an equity stake was also possible, he said, despite a tightening up in Korean government spending.

"It is about time" Kogas resumes considering equity investments in LNG projects after the recent slowdown, Mr Kang said on the sidelines of last Friday's event marking the start-up of exports from Santos's $US18.5 billion GLNG venture in Queensland, in which Kogas has a stake. The first cargo from GLNG is being shipped to Kogas's LNG import terminal in Incheon.

Woodside, the operator of the $40 billion-plus Browse project, is targeting South Korea and Japan for sales agreements for its share of LNG from the project, which comprises 1.2 million tonnes a year from each of three proposed processing vessels. It needs to sign up customer agreements in order to give a final investment decision for the project, which it is targeting for the second half of 2016. MORE