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KOSPO is seeking up to 3.7 trillion British thermal units (TBtu) of LNG on a delivered ex-ship (DES) basis.
Moreover, the delivery window is November 7-15 and the volumes will be delivered to a Kogas-operated LNG import terminal or an alternate LNG terminal in South Korea, according to KOSPO.
The price will be linked to JKM, but the “buyer may, at any time prior to and/or after selecting the preferred bidder, request to convert JKM-linked price to fixed-price,“ it said.
„LNG suppliers, including LNG producers, portfolio sellers or traders with successful track record of supply of at least one LNG cargo exceeding 60,000 metric tonnes to a Kogas terminal in the recent 60 month period shall be able to participate in this bid,“ KOSPO said.
Bids can be submitted by September 19, 2024
Kospo and the preferred bidder(s) are expected to enter into an MSA by no later than October 18, 2024, it said.
According to Kospo’s website, the firm has seven LNG power plants and these are Shinincheon, Busan, Namjeju, Yeongwol, Andong, ShingSejong, and Hanlim.
Last year, KOSPO agreed to buy 0.4 mtpa of LNG from Cheniere Marketing on a delivered ex-ship (DES) basis from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024.
Korean LNG imports
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.
In addition to these facilities, the firm is building a large terminal in the western port city of Dangjin and expects to launch the first phase in 2025.
Kogas recently completed lifting the roofs on all four 270,000-cbm tanks at its Dangjin LNG import facility.
According to customs data, during January-August, South Korean LNG terminals took 30.35 million mt, a rise from 29.11 million mt in the same period last year.
Australia was the biggest supplier during the period with 7.38 million mt of LNG, and the country was followed by Malaysia with 3.57 million mt and Oman with 2.97 million mt, the data shows.