Maputo, Mozambique – [Date] – Korea Gas Corporation (KOGAS) has announced significant progress in its Mozambique gas development project. The company, which acquired a 10% stake in the Area 4 block in 2007, began generating revenue from the project last year. KOGAS anticipates fully recovering its investment in overseas projects by 2032, driven by the successful launch of multiple projects beyond Mozambique.
According to KOGAS, the Area 4 block holds substantial natural gas reserves, equivalent to approximately 30 years of South Korea's annual consumption. This project has become a hallmark of successful overseas resource development for the nation.
Since acquiring its 10% stake from Eni in 2007, KOGAS has been actively involved in the project. In November 2022, the company commenced commercial operations at the Coral South floating liquefied natural gas (FLNG) facility, marking the beginning of LNG production. In 2023, the project entered a stable production phase, selling a total of 2.66 million tons of LNG. KOGAS's 10% share generated approximately $120 million in revenue.
KOGAS expects to produce and sell 3.37 million tons of LNG annually for the next 25 years, starting from 2024, ensuring a steady stream of income. Leveraging the vast reserves in Area 4, the company is exploring opportunities to develop subsequent LNG projects, aiming to accelerate the commercialization of discovered resources based on financial capacity and profitability.
As LNG production increases through the development of additional gas fields like Coral North, the demand for LNG carriers is expected to soar, potentially boosting the sales of South Korean shipbuilders, who currently lead the global LNG carrier market.
Furthermore, KOGAS has reduced carbon dioxide emissions by approximately 90,000 tons in 2023 compared to the previous year through various optimizations, including limiting the use of diesel generators and minimizing flare gas at the Coral I FLNG facility. In response to the growing global concern over climate change, KOGAS is actively pursuing low-carbon overseas projects, positioning itself as a key player in supporting global carbon neutrality initiatives.
A KOGAS official stated, "As multiple projects enter full-scale production, we expect the return on investment to gradually increase. We aim to fully recover our investment by 2032. To ensure sustainable growth, we plan to reinvest a portion of the recovered investment in new projects to generate continuous revenue from overseas operations until 2050."
[Copyright (c) Global Economic Times. All Rights Reserved.]
