|Coals & Minerals Team|
As the largest coals and minerals trader in Korea, Energy & Resources Division supplies coaking coal chiefly to steel mills, power plants and combined thermal power plants. Occupying #1 domestic coal market shares, Energy & Resources Division also actively deals in uranium, phosphate ores and other industrial minerals. Having made its debut in the domestic coal market in 1979 by supplying American hard coal to the Korea Electric Power Corporation, Energy & Resources Division¨s coal business has since then undergone a steady expansion. Today, Samsung Corporation is Korea's single most important trader in coaking coal (both industrial-use and fuel-use coals). It imports from Australia, China and Indonesia and re-exports in the form of trilateral trade. Currently, expected liberalization in China's coal export market, as a result of the country's recent joining of the WTO, Coals & Minerals Team is stepping up its efforts to expand Chinese-provenance coal supply.
Oil & Gas Team
First launched in the natural gas business in 1991, with Korea's first-ever import operation of Malaysian LNG, Samsung Corporation remains to date the only private business organization in the country to be engaged in LNG import enterprise. Under a 20-year deal providing an annual supply of 2 million tons, Oil & Gas Team has secured a long-term LNG procurement source. In 2003, the team landed an additional 7-year contract annually supplying 2 million tons of LNG. As part of its continuing efforts to secure overseas LNG sources, Oil & Gas Team has been undertaking new LNG projects in Asia and the Middle East. Following its equity investments of 1999 in the LNG projects in Oman and Qatar, the team further increased domestic inflow of LNG. Both the Qatar project and Oman project turned out to be highly lucrative. First dividend distribution was in 2001 for the Qatar project and in 2002 for the Oman project. Moreover, Oil & Gas Team is planning to take part in the domestic natural gas wholesale business, scheduled to allow private investment. By tapping into the domestic wholesale business, forecasted to yield stable revenues for the upcoming 25 years, Samsung Corporation can now link its overseas LNG production business with domestic sales, creating one integrated production/distribution line. Meanwhile, responding to the urgency of securing an autonomous and stable source of crude oil for the country, as has been stressed by the Korean government, Samsung Corporation decided to channel its financial resources and information capabilities into this task of national relevance. After launching into petroleum and natural gas exploration business in 1982, the team is currently producing about 5,500 barrels of crude oil daily from the oil field in Algeria's Issaouane (Samsung Corporation holds a 17% equity share) the team discovered. Moreover, jointly with Sinopec and PetroChina, two of China's state-owned petroleum corporations, the team is carrying out a petroleum exploration project and a natural gas development project in the Ordos Basin in China. In the meantime, Oil & Gas Team is looking into a new business opportunity in Kazakhstan's Caspian Sea region.
Coals and Minerals, LNG, Oil and Gas investment business
Energy & Resources Division contact Info.