The state-run Korea Gas Corporation has successfully discovered natural gas reserves that may amount to as much as 150 million tons, measuring 7 trillion cubic feet in an offshore mining lot in northern Mozambique.

The 160-meter thick gas layer was found in the Agulha-1 exploration well, which is located 80 kilometers off the northeastern Mozambican coast, in mining area 4, officials said last week.

“After starting drilling back in May, we reached 2,492 meters deep when we discovered the massive gas layer,” said Sa Bae-kyung, an official at KOGAS.

The total amount of gas found by the Korean state-run company in the corresponding mining area so far totaled 87 trillion cubic feet, including the 80 trillion cubic feet that had been discovered up to April this year.

Boosted by the consecutive successes, KOGAS is planning to establish an evaluation report on the Agulha gas mine and drill additional wells in the southern part of the mining area starting next year, officials said.

Under a loan system run by the Ministry of Trade, Industry and Energy, KOGAS is to be exempted from the government loan if the project fails and pay a special charge, should the project succeed.

The company currently holds 10 percent of the shares in the Mozambican gas development project, together with Italy’s state-run energy provider ENI (70 percent), Mozambique’s state-run oil company ENH and Portuguese GALP.

The consortium kicked off exploration back in 2007 with an exclusive right to explore the mining area for eight years and to develop and produce gas for the following 30 years.

“Even the 10 percent amount of the total gas reserves may meet Korea’s total energy demands for 5.1 years,” said the KOGAS official.

Development is to start in 2015 and actual production is expected from 2019, according to officials.

By Bae Hyun-jung (tellme@heraldcorp.com)