The company will construct 20 storage tanks by 2012, split among three LNG terminals—Incheon, Pyeongtaek, and Tongyoung.

The terminals currently contain a total of 40 storage tanks with total capacity of 5.17 million cu m. The new tanks will provide 3.7 million cu m of additional LNG storage capacity, enough for 42 days of residential use, the company said.

Three tanks will be added in 2008, three in 2009, five in 2010, six in 2011, and three in 2012. Large tanks of 200,000 cu m will feature prominently in the program, Kogas said.

Kogas said it is considering construction of a fourth LNG terminal after 2012.

South Korea, depending entirely on LNG imports for its gas supply, is the world"s second-largest LNG buyer after Japan. Kogas imported 24.27 million tonnes of LNG in 2006, up 8.6% over 2005. The country"s gas consumption is expected to increase by at least 50% in the next decade, and Kogas is lining up additional LNG supplies from Russia, Indonesia, Qatar, Yemen, and other suppliers.

Two thirds of the country"s gas consumption occurs during winter months, and Kogas said it arranges LNG swap cargoes with utilities in Japan and Taiwan to ease annual December-March shortages. The company also has formed a $10 million, 50-50 joint venture with Oman to provide Korea with additional LNG in case of winter supply disruptions. The storage tanks also provide buffer stocks during periods of peak demand.

PIN/OGJ.COM