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The decision was made during a visit by Yoon Sang-jik, Minister of Trade, Industry, and Energy, to the United States last week. Minister Yoon and Daniel B. Poneman, Acting Secretary of Energy, released a joint statement on cooperation between Korea and the United States for shale gas during the visit. They discussed cooperative measures related to shale gas, gas hydrate, clean energy technology and the Clean Energy Ministerial (CEM).
They also decided to hold a workshop on policies, markets, and technology in Houston, the capital of shale gas development, later this year.
Shale gas is found in very fine-grained sedimentary rock and its reserve is estimated at 150 billion tons, which can support the world for 60 years. The Korean government plans to substitute 20 percent of Korea’s liquefied natural gas (LNG) supply with shale gas by 2020.
Minister Yoon noted that Korea and the United States have agreed to share their knowledge and experience on shale gas, adding that this will enable Korean companies to develop shale gas technology and empower them to enter the U.S. market.
MOTIE will also expand joint research on gas hydrate production technology conducted by Korean and U.S. research agencies and encourage U.S. experts to take part in the Gas Hydrate Operation Offshore Korea project.
Both countries will collaborate to hold a successful fifth Clean Energy Ministerial next year in Korea.
MOTIE also announced during the U.S. visit that seven American companies including Boeing will invest USD 380 million in Korea. Minister Yoon said the pledge reflects strengthened cooperation between Korea and the United States despite threats from North Korea and strong trust on the part of American companies in the Korean economy.
Boeing will establish a maintenance, repair, and overhaul (MRO) center in Youngchun, North Gyeongsang Province. It will initially invest USD 20 million and invest USD 100 million once the facility is developed.
Curtis-Wright Corp., established by aviation pioneers the Wright brothers, has invested USD 30 million in nuclear reactor control valves and is also interested in investing in R&D centers.
The company Almost Heroes will make its first investment in Korea’s animation industry in the amount of USD 20 million.
Minister Yoon noted that Korea is rapidly growing as a global business hub, especially in light of the Korea-U.S. free trade agreement. He also emphasized the significance of Curtis-Wright Corp.’s investment in Korea’s nuclear reactor control valves, as it shows the world-class competitiveness of Korea’s nuclear technology.
Source: Newsis (May 13, 2013)
** This article was translated from the Korean.