South Korea has taken an equity stake in a liquefied natural gas (LNG) project for the first time, with the purchase by five companies of shares in Oman LNG LLC from Royal Dutch/Shell Group.
Shell sold for an undisclosed sum 12% of its own stake in Oman LNG to a group operating as a new company called Korea LNG, consisting of Korea Gas Corp. 24%; Samsung Corp., Hyundai Corp., and Daewoo Corp. 20% each; and Yukong Ltd. 16%.
Oman LNG has contracts to supply 4.1 million metric tons/year of LNG to Korea Gas for 25 years beginning in early 2000. Construction of the $2 billion liquefaction plant at Qalhat, Oman, is under way.
Oman LNG shareholders are now Government of Oman 51%, Shell 30%, Total 5.54%, Korea LNG 5%, Partex 2%, Mitsubishi Corp. 2.77%, Mitsui & Co. 2.77%, and Itochu Corp. 0.92%.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
