Ashurst has advised Korea Gas Corporation ("KOGAS") on its
acquisition of a stake in the US$16 billion Gladstone Santos LNG
project ("GLNG"), which completed on 16 February 2011. KOGAS and
Total have acquired a combined interest of 15% in GLNG. Ashurst
also advised KOGAS on the associated 20-year LNG off-take contract,
which provides for the sale by GLNG of 3.5 million tonnes per annum
(mtpa) of LNG to KOGAS.
The GLNG project involves the piping of coal seam gas to a
liquefaction plant at Gladstone, Queensland, Australia. The plant
will produce 7.2 mtpa of LNG through two processing trains.
The Ashurst team advising KOGAS was led by Tokyo partner John McClenahan, with senior
associate Arabella Dove and associate Glen McAskill in Tokyo, assisted from London by energy partner Anthony Patten with
associates Joanna Kay and Emily Gunn, and from Singapore by corporate partner Keith McGuire and associate Nick
Dimitriou. Blake Dawson (led by partner Rupert Lewi) advised KOGAS
on Australian law aspects of the transaction.
Commenting on the transaction, John McClenahan said:
"This is a major energy deal and we are delighted to have assisted
KOGAS in what we believe is the largest investment into Australia
by a Korean company to date. Korean energy companies are becoming
increasingly acquisitive and are increasingly looking to invest
further afield, as illustrated by this deal and the recent
acquisition of Dana Petroleum by Korea National Oil Corporation, on
which we also advised.
Our team is currently advising a number of other Korean energy
players, including Daewoo International, which was recently
acquired by POSCO, on LNG and gas projects in Asia. We also
recently hired in Tokyo Dan Le Fort, former Associate General
Counsel at Qatar Petroleum, to further boost our energy team
offering in this part of Asia."