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GS Group

GS Group

Industry: 
Energy
Symbol: 
SEO:078930
Country: 
South Korea
Sources: 

"South Korea's GS Engineering & Construction Group said on Thursday that it has called off a 1.42 trillion won ($1.2 billion) gas project in Iran following sanctions on the Middle East nation.  The company said in a filing to a regulatory agency that it it had cancelled on Wednesday the contract to sweeten gas from the South Pars field in Iran, signed with the Pars Oil and Gas Company (POGC) last October." (Reuters, "S.Korea GS E&C Says Scraps $1.2 bln Iran Gas Deal," 7/1/2010)

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"Iran's official news agency says Iran and a South Korean company signed a billion dollar agreement on refining natural gas. Tuesday's report by IRNA says the state-owned Pars Gas and Oil Company and South Korean GS Company signed the euro1.24 billion -- about $1.83 billion -- deal on Monday night. The project, to be completed in four years, will refine 3.9 billion square feet of natural gas per day to feed Iran's domestic consumption. Iran is the world's second largest owner of natural gas resources but routinely struggles with gas shortages during winter because it lacks sufficient facilities to capture and distribute the gas to market. Dozens of people died in rural areas because of lack of heating gas when a cold winter snap hit the country in 2007." (Business Week, Iran, South Korea sign euro1.24 billion gas deal," 10/13/09)

Response: 

GS Group has decided to cancel its billion dollar gas project in Iran following passage of UN and US Sanctions.