Maybe TCF will benefit from this
South Korea, Indonesia ink deals on joint CBM, LNG, power projects
Seoul (Platts)--2Jun2014/521 am EDT/921 GMT
South Korea and Indonesia on Monday agreed to work together on coalbed methane projects, a floating LNG terminal, on onshore liquefaction facility and a $2.8 billion synthetic natural gas plant in the Southeast Asian nation.
At the annual Korea-Indonesia Energy Forum held on the island of Jeju in South Korea, the two countries agreed to "expand cooperation in the whole gas value chain that covers upstream, midstream and downstream," the Ministry of Trade, Industry and Energy said in a statement.
The forum was joined by senior officials from the ministry, state-owned Korea Gas Corp. as well as Posco Energy and SK E&S, which import LNG from Indonesia. Senior officials from Indonesia's Ministry of Energy and Mineral Resources, upstream regulator SKK Migas and state-owned oil company Pertamina attended the one-day forum.
"On the upstream front, South Korea and Indonesia discussed joint projects to develop coalbed methane gas in Indonesia," the statement said.
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Joint efforts by the two nations to develop CBM would help South Korea ensure stable gas supplies and help Indonesia speed up sluggish projects to develop the unconventional gas," a South Korean ministry official said.
Indonesia plans to produce 1.5 Bcf/ day of CBM by 2023, but development of unconventional gas has been slow in the country, the official said.
In the midstream sector, the two countries are eyeing joint projects to build a floating LNG terminal, small LNG carriers, an onshore liquefaction facility in Indonesia, the ministry's statement said.
In the downstream sector, they discussed a proposed investment by South Korea's SK E&S in Indonesia's city gas project, the statement said. SK E&S also signed a memorandum of understanding with Pertamina on joint projects for power generation and LNG infrastructure.
The Korean Register of Shipping also signed an MOU with Pertamina to build a floating LNG terminal in Indonesia.
Korea Electric Power Corp. discussed a joint project with its Indonesia counterpart to build a Won 2.9 trillion ($2.8 billion) synthetic natural gas plant in Indonesia with a capacity of 1.1 million mt.