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Under the SPA, TotalEnergies will deliver 200,000 tons of LNG per year over an eight-year period, according to a statement by HD Hyundai Chemical.
The LNG supplies are scheduled to begin in January 2027 and continue through December 2034.
HD Hyundai Chemical said this is the first time a domestic petrochemical company has signed a contract with a global firm to import LNG directly from overseas.
The firm will use the LNG supplies as fuel for its naphtha cracking facility.
HD Hyundai Chemical expects a 21 percent reduction in fuel costs compared to its existing fuel.
This deal follows a heads of agreement that the two firms signed in September last year.
Thanks to this agreement, with prices indexed both to Brent and Henry Hub, TotalEnergies strengthens its long-term position in South Korea, the world’s third-largest LNG importing country, the firm said at the time.
Kogas deal
TotalEnergies recently also entered into a long-term heads of agreement with South Korean LNG importer Kogas.
Under the HoA, TotalEnergies will deliver 1 million tons of LNG per year over a 10-year period starting from the end of 2027.
Awarded to TotalEnergies by Kogas following an international tender, this contract increases to 3 Mt per year from 2028 onward the volume of LNG supplied by TotalEnergies to Kogas, currently the world’s largest LNG importer.
These additional LNG volumes will then be delivered to Korean industries, businesses, and households.
TotalEnergies said the LNG supplies will come from its global supply portfolio, and particularly from its US LNG production and offtake.
Kogas currently 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 also has a small-scale regasification terminal at the Aewol port on Jeju Island.
Kogas is also building the Dangjin LNG terminal and has just awarded a contract for the second phase of the project.
