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.

- Advertisements -

Most Popular

Adnoc buys stake in NextDecade’s Rio Grande LNG project

UAE’s Adnoc has purchased an 11.7 percent stake in the first phase of NextDecade's Rio Grande LNG export terminal...

Spot LNG shipping rates nearly flat, European prices drop

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet remained steady this week, while European prices...

India boosts LNG imports in April

India’s liquefied natural gas (LNG) imports rose in April this year compared to the same month last year, according...

More News Like This

South Korea’s Kogas reports lower sales in April

South Korean LNG importer Kogas reported lower gas sales in April compared to the same month in the year...

South Korea’s Kogas raises roof on giant Dangjin LNG tank

South Korean LNG importer Kogas has completed lifting the roof on the first 270,000-cbm tank at its LNG import...

Kosmos: FPSO on its way to GTA site

The floating production, storage, and offloading (FPSO) unit which will serve the BP-operated Greater Tortue Ahmeyim FLNG project has...

Mitsui: no decision on Adnoc’s LNG project

Japan's trading house Mitsui & Co said nothing has been decided on an LNG project in the United Arab...