BP, Kogas ink new long-term LNG supply deal

UK-based energy giant BP has signed a new long-term liquefied natural gas (LNG) sale and purchase deal with South Korea’s Kogas.

Under the agreement, BP Singapore, a unit of BP, will provide Kogas with up to 9.8 million tonnes of LNG over 11 years on a delivered ex-ship (DES) basis from BP’s portfolio of LNG sources.

BP said in an emailed statement that deliveries will start in mid-2026.

This deal is in addition to the existing long-term sale and purchase agreement between BP and Kogas for DES supply of LNG that was signed in 2022, it said.

BP did not provide additional details regarding the new deal.

Under the Henry Hub-linked SPA signed in 2022, BP Singapore, a unit of BP, will deliver 1.58 million tonnes of LNG per year to Kogas starting in 2025.

Kogas said that these supplies will come from the US, including the Freeport LNG terminal in Texas, and this is the first long-term supply contract between the two firms.

Prior to this new deal with BP, Kogas agreed to buy about 0.5 million tonnes per year of LNG for a period of 10.5 years on a delivered basis from Australia’s 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.

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.

Also, the firm is building a large terminal in Dangjin and expects to launch the first phase in December 2025.

Most Popular

Galp wins Calcasieu Pass arbitration against Venture Global

Portuguese energy firm Galp has won an arbitration case against US LNG exporter Venture Global LNG over LNG sales from the Calcasieu Pass plant in Louisiana.

MISC to order five more LNG carriers for Petronas charter

Malaysian shipping firm MISC will order five additional newbuild 174,000-cbm liquefied natural gas (LNG) carriers at China's Hudong-Zhonghua. The vessels will serve a 20-year charter with a unit of MISC's parent, Petronas.

Seatrium scores Excelerate FSRU conversion gig

Singapore's Seatrium has secured a floating storage and regasification unit conversion contract with an option for a second contract from US FSRU player Excelerate Energy.

More News Like This

Inpex takes stakes in BP’s Indonesian blocks

Japan's Inpex has acquired 50 percent participating interests each in two of BP's Indonesian offshore blocks where multiple gas and oil fields have been discovered.

Shell, partners take FID on LNG Canada Phase 2

UK-based LNG giant Shell and its LNG Canada partners have made a final investment decision on the project's second phase, which will double production capacity at the facility in Kitimat, British Columbia.

BP to sell Browse LNG stake to Osaka Gas

UK-based energy giant BP has agreed to sell a 5 percent stake in the planned Woodside-led Browse LNG project in Australia, which would deliver natural gas from the Calliance, Torosa, and Brecknock fields to the existing Karratha gas plant, to Japan's Osaka Gas.

Kogas reports lower gas sales in August

South Korean LNG importer Kogas said its gas sales decreased by 7.4 percent in August compared to last year.