Kogas working up feasibility study for Khabarovsk Territory dimethyl ether plant
KHABAROVSK. May 29 (Interfax) - Korea Gas Corporation (Kogas) is working up a feasibility study for the building of a plant in Khabarovsk Territory for the production of dimethyl ether from natural gas.
A protocol of intent was signed in Seoul Tuesday by Kogas President Chu Kang-Soo and Khabarovsk Governor Vyacheslav Shport, the territorial administration press center reported in a release.
The press release says Kogas will be selecting the site for the enterprise. The territorial administration undertakes the responsibility of working with the Korean company in negotiations with possible co-investors in the project and potential gas suppliers, including OJSC Gazprom and Exxon Neftegas Ltd.
"The territory's authorities will provide the Korean company with all necessary help in realizing the project. Kogas is for us one of the most preferred investors of those prepared to invest in the development of gas chemistry in the territory. The corporation will be involved not only in production, but also in product sales. We've built up good experience in mutual efforts, and I don't rule out that the South Korean company could play a role in other projects in the territory. Possibly in the creation of joint assembly production," Shport is quoted as saying.
Kogas representatives proposed the building of such a plant back in 2010. The general director of LLC Kogas Vostok, a Kogas subsidiary registered in Khabarovsk, Lee Chang Seon has said the corporation has sent the territorial authorities proposals on the setting up of dimethyl ether production and Gazprom and Exxon Neftegas Ltd. supplying gas for the project. There were two options suggested: capacity of 300,000 tonnes of product annually with investments of $354 million and capacity of one million annual tonnes with roughly $700 million in investments.
Dimethyl ether can be used as a fuel that cuts to very low levels harmful emissions into the environment, and also saves in transport costs as it does not require the building of pipelines or other costly infrastructure.