Singapore (Platts)--25Jun2007

South Korea has discovered some 600 million mt of gas hydrates off its
east coast and aims to begin commercial production by 2015 to meet its growing
energy needs, government officials said Monday.
     Engineers obtained chunks of gas hydrate from the deposit about 135
kilometers (85 miles) northeast of the southeastern industrial city of Pohang
and not far from the Donghae gas field, an official at the Ministry of
Commerce Industry and Energy said.
     "They successfully separated gas from the hydrate," the official said.
The sample is top quality, comparable to 99% methane gas," he said. Plans are
to start drilling at five spots in September, he added.
     The ministry estimates the deposit at about 600 million mt can meet 
the country's natural gas needs for some 30 years. 
     The government in July 2005 formed a gas hydrate development team with
the Korea National Oil Corporation, Korea Gas Corporation, and Korea Institute
of Geoscience and Mineral Resources. The team has been conducting surveys in
the East Sea. This is the first discovery of a gas hydrates since the project
was launched. 
     The country has earmarked Won 225.7 billion ($243.5 million) for the
project until 2014.
     Gas hydrates, ice-like deposits of water and natural gas, are located
deep underwater where cold temperatures and extreme pressure causes natural
gas to condense into semi-solid form. 
     South Korea is the world's second-largest LNG buyer after Japan and
relies on imports to meet all its demand. It imported a total of 25.26 million
metric tons of LNG last year, up from 22.32 million mt from the previous year.
--Charles Lee, newsdesk@platts.com