Korea Gas Corp (Kogas), South Korea’s largest LNG importer, has signed a contract to import 2.1 million tonnes of LNG per year from Qatar over 20 years, the energy ministry said.

Under the contract with RasGas, state-owned Kogas will import a total of 42 million tonnes of LNG from January 2007 to December 2026, the ministry said in a statement.
The long-term contract could be extended by seven years if needed, the statement said.
The two sides have signed a sales and purchase agreement. The companies signed an initial agreement, or heads of agreement, in November.
The import volume of 2.1 million tonnes per year is equivalent to around 8.5 per cent of South Korea’s total LNG imports of 24.6 million tonnes in 2006, the ministry said.
Qatar is South Korea’s largest source of LNG imports.
The Qatari foreign minister sought investment and expertise from South Korean companies for the Middle Eastern country’s infrastructure development projects.
“Qatar plans to invest more than $130 billion to develop and renovate its wide range of infrastructure in the next five years,” Qatari Foreign Minister Shaikh Hamad bin Jassem bin Jaber Al Thani said at an economic forum in Seoul.
The projects include communications, transportation, road networks, a water network, an electric power grid and the development of oil and gas fields.
Qatar seeks direct investment by South Korea and the transfer of various technologies for the projects, a person familiar with the deal said.
“The Qatar Investment Authority is increasing its exposure to the Asia Pacific region,” Kenneth Shen, head of Strategic and Private Equity of Qatar Investment Authority said.
Qatar plans to focus on the development of oil and gas fields, which would help cement its position as a major oil and gas producer.
“There is still room, particularly for South Korean companies, to join in exploration and production, refining and transportation in the Middle Eastern country,” the minister said.
South Korea is the world’s 11th largest economy, Al Thani said, adding that “Qatari businessmen will be quite interested in learning South Korean know-how and seeking investment opportunities from South Korea.”
Separately, the Korea International Trade Association (KITA), and its Qatari counterpart Qatari Businessmen Association (QBA), signed a memorandum of understanding to seek bilateral investment over the next three years.
The MoU is renewable every three years, said a KITA spokesman.
Qatar is also seeking to invest around $4 billion in South Korea starting from 2009, South Korea’s Ministry of Foreign Affairs and Trade said, adding that details of the investment plan will be discussed later.
“Qatar and South Korea have been partnering with each other largely in the areas of energy and construction but they will expand their partnership in other areas,” South Korea’s Finance and Economy Minister Kwon O-kyu said at the economic forum.
Shen said that given the size and importance of the South Korean economy to Asia and the rest of the world, “it is natural that the QIA would have an interest in investment opportunities in Korea.” Qatar is the largest source of LNg imports for South Korea, and is also the North Asian country's fifth largest crude oil supplier.