South Korean LNG importing giant Kogas said it has signed a deal with France’s TotalEnergies to boost liquefied natural gas trading and optimization.
Hee-Bong Chae, CEO of Kogas, and Thomas Maurisse, senior VP for LNG at TotalEnergies, signed the memorandum of understanding in Singapore on June 15, according to a statement by Kogas.
Kogas and TotalEnergies agreed to work together in LNG marketing and shipping, develop business opportunities related to trading, as well as build a cooperative system to strengthen energy security, Kogas said.
“In particular, in consideration of the recent volatility in the energy market, a consensus was formed on the need to pursue LNG trading and strategic diversification in the short term and aim for stable energy security in the long term,” the statement said.
Besides LNG, Kogas and TotalEnergies will also work to develop renewable and low-carbon hydrogen projects.
The two firms have already established a long-term LNG partnership.
Back in 2012, they signed a long-term agreement for volumes from Cheniere’s Sabine Pass LNG export plant in the US.
Four years later, the partners also signed a memorandum of understanding to jointly identify and pursue opportunities to develop the LNG market in Asia.
TotalEnergies is one of the world’s largest LNG players and plans to sell 50 Mt per year by 2025.
On the other side, Kogas operates four large LNG terminals in South Korea, but it also has a small-scale regasification terminal at the Aewol port on Jeju island. On top of these facilities, the LNG importer is building a large terminal in Dangjin.
In addition, the firm is developing its hydrogen business and recently signed two deals. Kogas aims to utilize its LNG infrastructure and knowledge gained in the LNG industry over the years to develop a hydrogen production and supply chain.