Kogas, BP pen LNG deal
South Korea’s Kogas has signed an 18-year deal with BP to buy US LNG, the company said on April 22.
BP Singapore, a unit of BP, will supply 1.58mn metric tons/year of LNG starting in 2025. Kogas did not disclose the value of the deal but said that the price will be linked to Henry hub.
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Kogas said that the deal will serve as a catalyst for strengthening the cooperative relationship between the two companies, as well as reducing its dependence on the Middle East. “With this contract, we expect to not only stabilise domestic natural gas supply and demand but also cut rates and strengthen supply-demand responsiveness using volume flexibility,” Kogas said.
The company has a near-monopoly when it comes to LNG imports. It operates four regasification terminals in South Korea: Incheon, Pyeongtaek, Tongyeong, and Samcheok.