KNOC, KOGAS to Jointly Work in US Shale Gas Sector
Korea National Oil Corp. will enter shale gas development by establishing a related company in the U.S. to avoid falling behind in the shale gas revolution.
The Korean oil company is joining hands with Korea Gas Corp. (Kogas), as the latter is an established shale gas player with expertise in the sector, donga.com reported.
A Korea National Oil Corp. source told dongo.com, “If we secure technological prowess in the U.S., we can also take on projects to develop shale gas in countries that lack capital and technology including those in Latin America, Southeast Asia and Africa.”
However, there are some sceptics who believe the move may not provide the kind of advantaged that are being visualised.
The report quoted experts as saying that the Korean consortium will also find it hard to start development of shale gas elsewhere with shale gas technology secured from the U.S because production requires a massive volume of water and chemicals.
Korean industry watchers say the shale gas revolution will become a “double-edged sword” for Korea. If the U.S. is to export shale gas abroad, it needs large-scale plant facilities for gasification, transportation and storage of gas, as well as vessels.