According to Reuters, the arbitration relates to a difference over price of a mid-term supply contract, and will be heard in a specialist arbitration court.
A KOGAS spokesperson confirmed the process was underway, but declined to give further details.
Operator of the NWS LNG, Woodside Energy, hasn’t made any comment as of yet.
KOGAS is the world’s second largest single buyer of LNG, importing the lion’s share of South Korea’s LNG to the tune of 30 MMt/a mainly from Australia and Qatar.
The NWS Project is one of the most advanced integrated gas production systems in the world where LNG, domestic gas, condensate and LPG are produced.
It includes five LNG processing trains, two domestic gas trains, six condensate stabilisation units, three LPG fractionation units as well as storage and loading facilities for LNG, LPG and condensate.
NWS is owned by the NWS Joint Venture, comprising BHP Billiton Petroleum (North West Shelf), BP Developments Australia, Chevron Australia, Japan Australia LNG (MIMI), Shell Development (Australia) and operator Woodside Energy.