08-11-04

The gas field in the East Sea near Ulsan began producing natural gas on the 5th. The Korean National Oil Corporation held an opening ceremony at the Ulsan Gas Field control office with over 1,000 participants.
Those present included Prime Minster Lee Hae-chan, the Minister of Commerce, Industry, Energy, Lee Hee-byeom and diplomats from oil producing countries working in Korea.

Thus, Korea’s dream of becoming an energy producing country came true within 40 years after Korea started searching the continental shelf in 1964. The Donghae Gas Field is located 58 km southwest of Ulsan in the sea and construction, which started in March 2002, was completed in two years and six months.
An estimated 5 mm tons of LNG and 1.7 mm barrels of light oil are available in the Donghae Gas Field. It has an estimated worth of $ 1.2 bn.

The Korean National Oil Corporation will provide 400,000 tpy of natural gas to the Ulsan and Gyeongnam areas for 15 years and light oil will be provided to S-Oil, the domestic oil refinery. The natural gas from the field will be enough to meet the needs of 340,000 households each year and is 2.2 % of annual domestic consumption.
The natural gas field is located 3,425 meters beneath the sea. It will be refined at the sea production facility and then transferred to land through 68 km of undersea and land pipes. The gas will be piped to the customers of the Oil Corporation after a second refining.

Donghae Gas Field was produced with Korean technology at every stage of its construction -- from search and development to production winning Korea recognition in the international oil development field.
The effect of replacing the increasing demand for imported natural gas will stimulate growth in related industries like plants and shipping. The employment of 43,000 people and addition of 2 tn won to the local economy will provide a great stimulus to the Ulsan region.

Source: Busanilbo