Indian Oil Corporation Ltd (IndianOil) and Korea Gas Corporation (KOGAS) have entered into an understanding for joint participation in exploration and production of oil and gas as well as developing natural gas infrastructure projects and LNG sourcing.
In a statement issued here today, IndianOil said that the memorandum of understanding was signed at the sidelines of the Petrotech-2012.
IndianOil has expressed desire to import gas to meet its requirements, and if it is left with surplus to sell to other customers.
The drop in domestic gas output and growing dependence on LNG had led to the company to take this decision, Director, Planning & Business Development, A.M.K. Sinha, had earlier told Business Line.
Currently, IOC is getting imported gas from Petronet LNG. This is part of its share as a promoter of Petronet. But, the company is now looking at sourcing gas by itself. IndianOil will also need gas for its upcoming five million tonne annually Ennore LNG terminal.
KOGAS is the national gas company of Korea and the world’s largest single importer of LNG clocking about 33 million tonnes annually in 2011.
KOGAS is the developer, owner and operator of three large-scale LNG receiving terminals as well as an extensive nationwide pipeline network in Korea.
It also has equity investments in LNG liquefaction projects and 20 overseas E&P projects and has lined up LNG sourcing contracts from several countries.