Possibility of Gas Pipeline from Russia to South Korea Still Exists

Possibility still exists of natural gas pipeline from Russia to South Korea despite difficulties and the development of new Russian LNG projects aimed at Asian exports, President Vladimir Putin said Tuesday.

Russia is developing various LNG projects in the proximity of South Korea but pipeline gas supplies are also possible, Putin said in an interview with South Korea's KBS, broadcast by state-run Russian 24 TV network, reports Platts.

According to Platts, Putin said that one of the options would be to build an onshore transportation route via North Korea, "which is safer and cheaper if put aside problems of political nature.”

"If the two Koreas agree [on the project], it would be an ideal scenario," Putin said. He further said that an offshore pipeline is also possible but is not an easy project.

Smooth execution of the project could happen only if investments into the infrastructure would be secured by guaranteed purchases of gas volumes and pricing, Putin said, reports Platts.

In mid-2012, Gazprom said it has dropped plans to build an offshore gas pipeline to South Korea, claiming the project is too expensive but the discussions were ongoing over the onshore pipeline.

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