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KOGAS starts generating profit from investment in Australia

2017/12/26 17:17

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SEOUL, Dec. 26 (Yonhap) -- South Korea's state-run Korea Gas Corporation (KOGAS) said Tuesday it has collected the first profit from its investment into a liquefied natural gas plant in Australia.

KOGAS -- which clinched an agreement to obtain a 15-percent stake in the Gladstone LNG project in 2010 -- made a combined investment of US$4 billion into the plant located in Queensland, Australia, last year.

KOGAS said it has recently generated a profit of $24 million from the project, though the project faced challenges due to low fuel costs coupled with the Australian government's regulation on the export of LNG products.

The Gladstone LNG plant produced 5.52 million tons of LNG this year, with the sales estimated at 2.4 trillion won (US$2.2 billion). Of the figures, shares of KOGAS stand at 830,000 tons and 365.2 billion won.

KOGAS said it plans to rake in a profit worth $100 million next year on the back of the increased production from the plant coupled with the recovery of the global fuel prices.