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.
