Blue Energy and Korea's KOGAS ink LNG joint venture
Tuesday, 16 March 2010
Brisbane-based energy company Blue Energy (ASX: BUL) has inked a joint venture with Korea Gas Corporation (KOGAS) to investigate the feasibility of developing small scale Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) projects within Eastern Australia.
KOGAS, a partner and shareholder in Blue Energy, has grown to become the world's largest single LNG importer. It is listed on the Korean Stock Exchange (KSE) with 2008 total revenue of A$24billion.
It has an option to farm into the company’s Galilee Basin (ATP813P) and northern Bowen Basin (ATP814P) permits.
With the current deal, Blue Energy and KOGAS will identify opportunities to develop and operate micro LNG and CNG facilities as a clean, environmentally friendly alternative to existing fuels such as diesel, petrol and LPG.
“The signing of the MOU with KOGAS is a significant achievement for Blue Energy. It is confirmation of the confidence in the company’s strategic direction, the quality of our assets and the expertise of our people,” Blue Energy chairman, Peter Cockcroft, said today.
Both companies share a vision for a “green highway” where environmentally friendly natural gas powered vehicles, both cars and trucks, can travel not hindered by fuel availability constraints up and down the east coast of Australia.
Korea has successfully built an increasing natural gas vehicle sector, currently with over 20,000 buses and trucks using natural gas as a fuel, either in the form of LNG or CNG.
There are obvious environmental advantages to these fuels, and KOGAS aims to utilise its experience and knowledge in this sector to assist Australia to utilise its vast onshore natural gas resources, particularly in Eastern Australia.