Korea Gas Corp. to visit Arun gas field in August

Korea Gas Corp. to visit Arun gas field in August

SEOUL (Dow Jones): State-run Korea Gas Corp., or Kogas, hopes
to conduct a due-diligence on Arun gas field in Indonesia at the
end of August to decide a date to restart liquefied natural gas
import, a company official said Monday.

"We suggested that we see for ourselves if Arun is safe and if
productions are going well...to secure safe LNG supply in the
future," the official said. But the due-diligence date hasn't
been set yet, he added.

Representatives from Kogas were in Jakarta last week to
discuss when to resume importing LNG from the Arun gas field in
Aceh province but no decision has been made, the official said.

Indonesia's national oil and gas company Pertamina had asked
South Korea to buy LNG from Arun beginning August but South Korea
doesn't have room to receive the volume until October, officials
from Kogas and the energy ministry have said.

Last week, a Pertamina's spokesman said the company expects
excess LNG capacity August through September to reach 750,000-
875,000 metric tons because Kogas has covered its requirement in
that period from another source.

Pertamina is trying to dispose of the excess LNG available up
to September in the spot market, he said.

B"Hopefully, Kogas will resume Arun LNG loadings from October
onwards," the Pertamina spokesman said.

ExxonMobil Indonesia shut its onshore gas operations in the
restive Aceh province in March, citing security concerns. As a
result, LNG exports were halted.

ExxonMobil Indonesia is a unit of Exxon Mobil Corp.

Indonesia is South Korea's largest LNG supplier. South Korea
has a long-term contract with Indonesia to import 5.3 million
tons of LNG a year.

South Korea also receives 11.56 million tons of LNG a year
from its other contract LNG suppliers, Malaysia, Qatar, Oman and
Brunei.