Korea Gas Corp (Kogas) said it would set up a $10 million venture with Oman to jointly trade and store LNG.

The deal would secure a steady supply for South Korea, the world’s largest LNG importer. Kogas and Oman’s government will each take a 50 per cent stake in the venture, Korea Gas said in a statement.
The deal follows an agreement the two countries signed in November 2005 to cooperate on securing energy reserves.
LNG, which is relatively expensive in generating power compared to other raw materials, reaches peak demand during summer and winter for South Korea.
Oman, the world’s eighth-largest LNG exporter, annually sells seven million tonnes of LNG overseas.