BP inks long-term US LNG supply deal with South Korea’s Kogas

South Korean LNG importing giant Kogas has signed a deal with BP to buy US LNG for a period of 18 years.

Under the Henry Hub-linked sale and purchase deal, BP Singapore, a unit of BP, would deliver 1.58 million tonnes of LNG per year to Kogas starting in 2025, the latter said in a statement on Friday.

The firm said that the supplies would come from the US, including the Freeport LNG terminal in Texas.

Also, the import volume covers about 3 percent of South Korea’s annual LNG consumption, Kogas said.

According to Kogas, this is the first long-term supply contract between the two firms.

Kogas said this supply deal with “competitive prices” would contribute to easing South Korea’s domestic natural gas prices and diversify supply in times of soaring oil and LNG prices.

In July last year, Kogas also signed a long-term supply deal with LNG giant QatarEnergy. This deal is for 20 years and 2 million tons of LNG per year, also starting in 2025.

The Koran firm currently operates four large-scale LNG terminals, namely Incheon, Pyeongtaek, Tongyeong, and Samcheok, as well as a small-scale regasification terminal at the Aewol port on Jeju island.

Kogas is building a large terminal in Dangjin as well.

Most Popular

Venture Global’s CP2 LNG to start mobilization and site preparation

Venture Global LNG's CP2 LNG has received approval from the US FERC to start mobilization and other limited activities for the LNG project in Louisiana.

Prime Infra to buy 60 percent stake in First Gen’s Batangas LNG terminal

First Gen has entered into a deal with Prime Infrastructure Capital under which the latter will acquire a 60 percent equity stake in First Gen's gas business in the Philippines, including the Batanagas LNG terminal.

Atlantic LNG shipping rates continue to decrease

Atlantic LNG freight shipping rates continued to decrease this week, while European prices also dropped compared to last week.

More News Like This

BP seals LNG SPA with India’s Torrent Power

A unit of UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with India's Torrent Power.

BP inks LNG SPA with China’s Zhejiang Energy

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with China's Zhejiang Energy.

BP ships second Tortue LNG cargo

UK-based energy giant BP and its partners have sent the second LNG cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, according to shipping data.

China to receive first Tortue LNG cargo

China is expected to receive the first LNG cargo produced at the BP-operated Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, according to shipping data.