Woodside, Kogas seal long-term LNG supply deal

Australian LNG player Woodside has signed a long-term LNG supply deal with South Korean importer Kogas.

The sales and purchase deal provides for the supply of about 0.5 million tonnes per annum of LNG for a period of 10.5 years on a delivered basis, starting in 2026 subject to customary conditions precedent, according to Woodside.

LNG delivered to Kogas under the SPA will come from uncommitted volumes across Woodside’s global portfolio, including the Scarborough energy project which is targeting first LNG cargo in 2026.

In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments worth about $12 billion.

Also, Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.

Woodside CEO Meg O’Neill said the SPA was “significant” as Woodside’s first long-term supply agreement into Korea, the world’s third largest LNG market.

“Woodside is pleased to be a long-term supplier of LNG to Kogas, a leading global energy company and one of the world’s largest LNG importers,” she said.

O’Neill said this agreement “is further demonstration of ongoing robust demand for Woodside’s products from major energy customers in our region.”

Kogas president and CEO Choi Yeon-hye welcmoed the signing of the SPA with Woodside.

“This SPA has enabled Kogas to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea,” she said.

Kogas operates 77 LNG storage tanks at five LNG import terminals in South Korea.

The large terminals include Incheon, Pyeongtaek, Tongyeong, and Samcheok, while the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.

Most Popular

South Korea’s Posco says first LNG carrier to start ops in H2

Posco International, a unit of South Korean steel producer Posco, plans to start shipping LNG with its first dedicated LNG carrier in the second half of this year.

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

Wilhelmshaven LNG jetty ready to welcome Excelerate’s FSRU

Dutch marine contractor Van Oord announced on Monday it had completed the new jetty for its client, state-owned LNG...

More News Like This

Woodside gets OK for NWS extension project

Australian LNG player Woodside and its partners in the North West Shelf joint venture have secured environmental approval from the Australian government for the North West Shelf project extension.

South Korea’s Kogas boosts April sales

South Korean LNG importing giant Kogas said its gas sales rose by 13.9 percent in April compared to last year.

Woodside to raise $3.5 billion via US bonds

Australian LNG player Woodside has priced $3.5 billion of senior unsecured bonds in the US market.

Woodside’s Louisiana LNG seeks FERC extension

Woodside is seeking an additional eight-month extension from the US FERC to complete and put into service its Louisiana LNG export facility.