By Kim Se-jeong
Staff Reporter
For Australia, Korea is now a market where its energy minister is raising the ``buy Australian liquefied natural gas (LNG)'' campaign.
Last week, Martin Ferguson was the first energy minister from Australia to visit Korea.
``We (Australia) are currently meeting part of Korea's LNG needs, but there is a rich, mutually beneficial opportunity to improve this situation,'' he said during a meeting with Australians and Koreans in Seoul last Monday.
Australia is one of the big LNG producing countries, exporting to Japan and the western hemisphere. Quality and reliable shipment are among the beneficial aspects of Australian gas.
Korea is rising as a big natural gas consumer where demand is more stable than in countries like the United States, an economist told The Korea Times as a reason why Australia is shifting its eyes to Korea.
Furthermore, amid the economic downturn, Korea would be a significant buyer that could fill the gap left by Australia's reduced LNG revenue.
Korea has grown to become a substantial consumer of natural gas, and the Korea Gas Corporation (KOGAS) is the largest single LNG buyer in the world.
According to the government's National Energy Basic Plan released last December, Korea used 26 million tons of gas last year alone and is projected to consume 24 million tons in 2009, a slight decrease due to the economic downturn.
The minister said the energy-related industry in Australia is on the rise as the number of firms involved are increasing and areas under exploration are expanding, encouraging prospective Korean investors to participate.
Nonetheless, it will take time for Korean firms to review Australia as a source of long-term gas supply, said a researcher who asked to remain anonymous.
Despite its quality and stable political and economical outlook, environmental concerns could obstruct the exploration process.
Furthermore, Australian gas isn't competitive in price compared to that from Indonesia, one of the largest LNG suppliers to Korea. And when it comes to proximity, it's hard to say Australia is on the winning side.
During his two-day visit, Ferguson met with leaders of energy-related government agencies, including Minister of Knowledge Economy Lee Youn-ho, and commercial firms. He also met with representatives of the tourism industry in connection with his work as tourism minister.
The minister was welcomed as a special guest for the official launching of the Australia Chamber of Commerce in Korea (AUSTCHAM KOREA). In his message, Ferguson called for support from business in paving the way for building a prosperous energy partnership with Korea.