Based on growing LNG demand in South Korea, the state-run company called for tenders at the end of last year for one million tonnes of LNG per year from 2004 to 2007 and received about six proposals. However, the company is still considering the rate of growth and whether the size of the short term contract is necessary.
In addition to the proposed new contract KOGAS will be looking for supply contracts to replace a long-term deal with Indonesia for the annual supply of 2.3 million tonnes which expires in 2007.
South Korea currently buys more LNG than any country except Japan and was estimated to have consumed 19.6 million tonnes of LNG last year.
The company's current contracts with companies in Indonesia, Malaysia, Brunei, Qatar, Oman and Australia are not expected to expire for more than 20 years.
