Kogas to help upgrade capacity at Primorsk Gas
VLADIVOSTOK. Nov 16 (Interfax) - Russian LPG supplier Primorsk Gas (Vladivostok) signed a preliminary agreement with Korea Gas Corporation (Kogas) in October on modernization of the Russian company's LPG processing, storage and transportation capacity.
Kogas will provide financing and advice in selecting South Korean-made equipment, a source at Primorsk Gas told Interfax.
The two companies also agreed joint participation in gasification and gas supplies for Primorye.
It was reported earlier that Kogas would take part in gasification of cities and territories in Primorye under an agreement reached at Kogas CEO Choo Kangsoo's meeting with Primorye Governor Sergei Darkin.
Kogas expressed interest in investing in construction of branch lines from the Sakhalin-Khabarovsk-Vladivostok gas pipeline in order to provide gas supplies to households in Primorye. In the first stage, combined heat and power plants and boiler plants will be converted to burn gas.
Primorsk Gas specializes in supplying LPG to consumers in Primorye.
Rosneftegaz owns 25.5% of shares in Primorsk Gas, company General Director Alexei Khmel has 18.2%, and his deputies Fuad Kafarov and Oleg Gorkavtsev have 15.245% and 12.901% respectively.