KOGAS and Bp Sign Long-term US LNG Supply Agreement

According to World Gas News on April 23, Korea Gas Corporation (KOGAS) signed a long-term contract with British oil and gas company bp to purchase U.S. liquefied natural gas.

The agreement is an 18-year Henry Hub LNG sales and purchase agreement. KOGAS said it hopes to contribute to the stabilization of domestic natural gas prices.

Under the SPA agreement, BP Singapore will deliver 1.58 million tonnes of LNG annually to South Korea starting in 2025. This is equivalent to about 3% of annual domestic consumption. The LNG will come from the United States, including Freeport LNG.

The contract is the result of an international liquefied natural gas (LNG) tender conducted by KOGAS in 2018 to secure competitive liquefied natural gas (LNG) volumes. In addition, it signed a 20-year agreement with Qatar from July 2021 to purchase 2 million tonnes of LNG per year.

In addition, this is the first long-term contract between KOGAS and bp, which is a catalyst to strengthen the cooperation between the two companies.

Earlier this month, the South Korean company also reached an agreement with U.S. energy company Sempra Infrastructure to jointly realize the global low-carbon, zero-carbon energy transition.