Plan to send Russian gas to S Korea via N Korea put off

Posted on: Tue, 29 Sep 2009 04:08:00 EDT


Symbols: KRAGF
SEOUL, Sept 29, 2009 (Asia In Focus via COMTEX) --
KRAGF | Quote | Chart | News | PowerRating -- Plans to import Russian
natural gas through a North Korean pipeline have been shelved
due to strained inter-Korean relations, the head of South
Korea's state-run energy company said Tuesday. KOREA GAS CORP
(KOGAS) (KSE:36460) president Choo Kang-soo said unless North
Korea specifically asks for the pipeline to be built on its
soil, Seoul will not pursue the piped natural gas (PNG) project
but opt to import liquefied natural gas (LNG) directly from
Russia by ship.

* "An understanding has recently been reached with Russian
partners on this issue," the chief executive said, adding that
recent developments like the nuclear standoff raised the
importance of creating a "controllable schedule" for getting
the gas on time.

* He pointed out that the inability to control cross-border
issues has made the PNG plan less viable.

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