DNV and KOGAS announce research and development agreement for LNG

Published:  13 April, 2012

DNV has signed an MOU with Korea Gas Corporation (KOGAS), South Korea’s state-run gas corporation, to cooperate on research and development in the LNG sector. While this is DNV’s second MOU with KOGAS, following the first in 2010 to cooperate on EHSQ issues, DNV is the first international risk management organisation in Korea to cooperate with KOGAS on research and development projects in the LNG sector.

DNV and Korea Gas Corporation (KOGAS) agreed to cooperate on research and development in the LNG sector. Based on the signed MOU, DNV and KOGAS will co-organise conferences and cooperate on R&D projects throughout the entire LNG value chain, from upstream to downstream, including gas reservoir exploration, natural gas production, liquefaction, transportation, storage, regasification and supply.

“DNV has maintained a good relationship with KOGAS, providing several SHE risk management services that include EHSQ evaluation and safety culture assessment. We’re happy to expand our cooperation to the research area and further our long-term partnership with KOGAS. Based on our expertise in the LNG industry, we anticipate helping KOGAS to acquire innovative technology and strengthen its position in the global market,” said Mr Jon Rysst, Regional Manager for DNV Korea and Japan.

As the sole LNG provider in Korea, KOGAS is continuously expanding its investment in foreign resource development projects and acquisitions of non-conventional gas, such as shale gas, to obtain a stable energy source. Furthermore, KOGAS is more focused on the mid-downstream LNG business, which concentrates on a return on investment based on LNG demand and stable income generation through technical services.

While continuously providing SHE risk management services to KOGAS to strengthen its mid-downstream operations, DNV will further its cooperation with KOGAS in order for this national LNG provider to acquire advanced technical competence and create long-term value in the global LNG market.

LNG (Liquefied Natural Gas)
Natural gas mostly contains methane and small amounts of ethane, propane, butane, etc. LNG is a natural gas that has been temporarily converted into liquid form for ease of storage and transport by being cooled to approximately -162°C (-260°F).  The LNG process involves a gas treatment plant for the removal of sulphur, carbon dioxide, water and other contaminants so that, when combusted, LNG emits 34% ~ 49% less CO2 than fossil fuels.  Korea is the world’s second-largest LNG importer (imported 16.1% of LNG in global trade), next to Japan (40.7%) (based on 2008 data).

LNG Value Chain
- Upstream: gas reservoir exploration, natural gas production and liquefaction
- Middle Stream: LNG transportation
- Downstream: LNG receiving, storage and distribution

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