S.Korea's SK Group signs MOU with GE to jointly develop US shale gas

SEOUL (Reuters) — South Korean energy conglomerate SK Group signed a memorandum of understanding (MOU) with General Electric on Thursday to jointly develop US shale gas fields in a bid to expand in the US shale gas sector.

The partnership with GE will help SK Group bring in US LNG to South Korea as well as onsell it to other countries amid growing US LNG exports, SK Group said in a statement.

The deal was signed a day ahead of a planned summit meeting between South Korean President Moon Jae-in and US President Donald Trump in Washington.

South Korea, the world's second-biggest LNG importer, has encouraged local gas companies to invest in US gas projects amid expectations that more opportunities will arise under a Trump administration.

SK Group said it planned to invest 1.8 T won ($1.6 B) in the United States over the next 5 yr and would seek up to 5 T won worth of potential investment opportunities.

The investment would also help the United States export about 2 T won of US-origin LNG per year and narrow a trade gap between the two countries, the company said in the statement.

Also on Thursday, Korea Gas Corp, the world's second-biggest LNG buyer, said it signed an MOU with US companies including ExxonMobil and Energy Transfer for cooperation in US LNG projects.

KOGAS is set to receive its first LNG cargo under a 20-yr deal with US exporter Cheniere Energy in early July.

In January this year, SK E&S, SK Group's power and gas arm, imported South Korea's first spot cargo of US shale gas from Cheniere Energy Inc. SK E&S is also set to bring in 2.2 MMtpy of US LNG from 2019 through 2039.

Reporting by Jane Chung; Editing by Richard Pullin

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