1 week Ago By Lee Jun-sung
On November 6, Solutions for Our Climate (SFOC) filed an administrative lawsuit against Korea Gas Corporation (KOGAS) demanding the disclosure of information related to the Mozambique gas field project. KOGAS has invested approximately 1.5 trillion won in the Mozambique gas project, specifically in the Coral North FLNG (floating LNG liquefaction plant), from 2008 until April this year.
SFOC argues that the project's profitability is uncertain and raises concerns about significant increases in greenhouse gas emissions and the forced relocation of local residents. Despite requests for information disclosure regarding the preliminary feasibility study of the Coral North project in Mozambique Block 4, KOGAS refused, prompting the lawsuit to overturn the decision to withhold information. The Mozambique gas field development is the largest in Africa, located in Cabo Delgado Province.
Korea is involved in Block 4, with KOGAS committed to investing around 1.5 trillion won from 2008 through April 2024. "The principle of information disclosure is crucial for public participation and government transparency," said an official from SFOC.
"They stressed the need for strict interpretation of exceptions that justify non-disclosure." “If there are managerial or trade secrets as claimed by KOGAS, those sections could be excluded, with only the feasibility evaluation content disclosed, as it’s difficult to claim all information is confidential," he added. The Coral Sul project, in which KOGAS made a final investment decision in 2017, has reported ongoing deficits due to delays.
Last year, funding shortages led to a 25.4% increase in investment, approximately 153.7 billion won, yet it still recorded an operational loss of 43.
3 billion won in the first quarter. In response, KOGAS countered in a media statement that SFOC' claims about the project's uncertain profitability are inaccurate. “The results are trade secrets and remain undisclosed based on confidentiality obligations within joint operation agreements,” said an official from KOGAS regarding criticism of withholding feasibility study results.
Kim So-min, a researcher at SFOC, warned that if Korean public financial institutions and companies continue to invest heavily in the Mozambique LNG project, they cannot avoid the human rights issues occurring in Mozambique. She also pointed out that the project faces not only human rights risks but also risks of civil unrest, climate impact, and financial instability. Meanwhile, the project is also linked to other Korean entities such as Exim Bank of Korea, Korea Trade Insurance Corporation, and Samsung Heavy Industries.
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