S. Korea Plans to Import Russian Gas Through DPRK

S. Korea plans to import Russian gas through DPRK

SEOUL, Sept. 30 (Xinhua) — South Korea decided to import nearly 20 percent of its future natural gas needs from Russia via pipeline passing through the People’s Republic of Korea (DPRK), the country’s Korea Herald reported Tuesday.

Under the 100 billion U.S. dollar agreement by South Korean President Lee Myung-bak and Russian President Dmitry Medvedev, Seoul will import 10 billion cubic meters of gas a year for 30 years from 2015.

“Buying natural gas is becoming increasingly difficult as major economies engage a war to secure future energy sources. The Russian gas deal is a major achievement of the government in its drive to secure a stable supply of natural resources for the country,” said Lee Jae-hoon, the vice minister for energy.

“The project will bring economic benefits to all of the three countries,” he added.

However, the plan of buying Russian gas is facing concerns as South Korea’s energy security may be vulnerable to the capricious political climate regarding DPRK.

The South Korean government said it will deal with that problem in the contract.

“We will have that point covered in the contract, For instance, we can receive gas in the form of LNG, in case of a problem in the pipeline network,” Lee said.

South Korea’s state-run Korea Gas Corp. and its Russian counterpart Gazprom is to sign a formal contract on the gas purchase in 2010.

From 2011 to 2014, construction of the envisioned pipeline from Russia’s Vladivostok to South Korea is scheduled, and gas delivery will begin from 2015.

According to the Ministry of Knowledge Economy, the prearranged import amount of 10 billion cubic meters is equivalent to 7.5 million tons of liquefied natural gas, which will be about 20 percent of the country’s estimated gas demand of 33.5 million tons in 2015.

The ministry said the amount is almost 96 percent of South Korea’s total household gas consumption in 2007 of 7.8 million tons.

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