S.Korea, U.S. agree to jointly develop gas hydrate

SEOUL, April 21 (Reuters) - South Korea and the United States have agreed to jointly develop gas hydrates and seek ways to commercially tap the resource, Seoul's Energy Ministry said on Monday.

The statement of intent, signed by South Korea's Minister of Knowledge Economy Lee Youn-ho and U.S. Energy Secretary Samuel Bodman, calls for cooperation in gas hydrate exploration, developing viable means to use the resource, conducting field tests and exchanging personnel and data, the ministry said.

Sources at the ministry said the new pact could open the door for South Korean companies to participate in the Alaska North Slope project which will test-produce gas hydrates from 2009.

"Korean firms such as Korea Gas Corp (KOGAS) (036460.KS: Quote, Profile, Research, Stock Buzz) could be asked to participate in the U.S.-led Alaska North Pole project," said a ministry official.

Gas hydrates, usually found in deep oceans where cold temperatures and high pressure cause natural gas to condense into semi-solid form, can be used as an alternative to liquefied natural gas (LNG).

Only South Korea, the United States, Japan, India and China have confirmed findings of the resource.

In November, South Korea found a deposit of gas hydrate that may hold up to 600 million tonnes in the East Sea, large enough to meet the country's LNG needs for 30 years.

The government invested 66.7 billion won ($66.87 million) from 2005 to 2007 to find and determine the size of hydrate deposits, and plans to spend an additional 85 billion won until 2011. ($1=997.5 Won) (Reporting by Angela Moon; Editing by Edmund Klamann)